Nigerian government has denied reports that it has suspended plans to remove petroleum subsidy by June 2023

The Nigerian government has denied reports that it has suspended plans to remove petroleum subsidy by June 2023. Earlier this week, the Minister of Finance, Zainab Ahmed, was quoted as saying that the government had suspended the planned removal of subsidy on petroleum products by the end of President Buhari's administration.

However, in a statement signed by her Special Adviser on Media and Communications, Yunusa Tanko Abdullahi, Ahmed clarified that there has been no change in the overall policy direction on the plan to end petrol subsidy by June 2023. The Minister added that the government had expanded the subsidy removal committee to include teams from the incoming administration and state governors to facilitate the process.

According to the 2023 Fiscal Framework and Appropriation Act and the Petroleum Industry Act (PIA), the government is expected to exit fuel subsidy by June 2023. The committee is now tasked with working out a roadmap for the removal of the subsidy, while ensuring sufficient supply of petroleum products and providing support to the poor and vulnerable.

The removal of petroleum subsidy has been a contentious issue in Nigeria for years. Proponents argue that it is a waste of government resources and contributes to corruption, while opponents argue that it will lead to higher prices and worsen poverty. The government has been gradually reducing the subsidy over the years, but the latest move to remove it entirely by June 2023 has been met with mixed reactions.

Some experts argue that it is a necessary step towards economic reform, while others warn that it may lead to social unrest and political instability. The government's decision to involve members of the incoming administration and state governors in the subsidy removal committee is seen as a positive move towards consensus-building and ensuring a smooth transition of power.

However, the success of the subsidy removal plan will ultimately depend on effective implementation and the government's ability to provide alternative measures to support the poor and vulnerable.