The Nigerian government will remove fuel subsidies by 2022 and replace them with a N5000-a-month transportation grant to the poorest Nigerians,
The Cable reports. Zainab Ahmed, the minister of finance, budget and national planning, made this known on Tuesday, November 23, while speaking at the launch of the World Bank Nigeria Development Update (NDU). The minister of finance says Nigeria will remove fuel subsidies by 2022.
According to Zainab, the grant will go to about 20 to 40 million people who make up the poorest population in Nigeria.
The minister went on to note that the final number of beneficiaries will depend on the resources available after the removal of the fuel subsidy, Arise TV added.
The World Bank in the development update had said the poorest 40% in Nigeria consume less than 3% of the total PMS in the country, highlighting that the rich were benefiting more from the subsidies.
Though the move is set for June 2022, Ahmed said the federal government hopes to do this before then in line with the Petroleum Industry Act (PIA).
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The minister of finance, budget and national planning made the remark during an interview on Channels Television's Politics Today show on Thursday, November 11.
According to Ahmed, fuel subsidy is costing the country a significant amount of resources that should have been used for education, health and critical infrastructure.