FG Removes Electricity Subsidy Quietly, Petrol In Phases
The Minister of Finance, Budgets and National Planning, Mrs. Zainab Ahmed, said that the Federal Government, FG, has quietly removed all subsidies in the power sector, with a plan to gradually end subsidies on petrol.
Ahmed who spoke at a virtual meeting of the International Monetary Fund (IMF) with the theme: “The Political Economy of Fiscal Reforms in Africa”, said the current high price of crude oil has further increased petrol subsidy burden on the Federal Government.
She noted that though the government had a setback in its plan to have subsidies on petrol removed by July this year, it would work with the National Assembly to have it removed in phases.
She stated: “We are cleaning up our subsidies. We had a setback, we were to remove fuel subsidy by July this year but there was a lot of push back from the polity. We have elections coming and also because of the hardship that companies and citizens went through during the COVID-19 pandemic, we just felt that the time was not right, so we pulled back on that.