Minister of finance, Zainab Ahmed has intimated that the federal government will pay Nigerians transport allowance when they remove the fuel subsidy.
Fuel subsidies, she said, are a major burden and waste on the nation’s economy, and that the country’s escape from the subsidy regime is essential.
According to the finance minister, the Petroleum Industry Act (PIA) mandates the deregulation of petroleum products, which will begin in July 2022.
She made her submission in an interview on Channels Television.
In her words: “In making our plans at least in the 2022 budget, we assumed that this deregulation will take effect from July 2022,” she said.
“While the act was passed. The president said there would be a one-year timeframe within which implementation will be made, moving from the status quo to the provisions of PIA.
“We assume that by June we will be able to exit the fuel subsidy, and we have made provision only up till June in the budget for fuel subsidy.
“And it is important that we exit this subsidy. It is costing us a significant amount of resources that we could have applied for education, health and critical infrastructure. It is a major waste and a major drain on the economy.”
“If you look at what I said earlier, as from July 2022, there is no provision for fuel subsidy. Yes. We are trying to see if we can make it earlier. If we are able to get the funding to provide this alternative transport allowance, then we will be able to make it earlier.”