The Minister of Finance, Budget and National Planning, Zainab Ahmed, has urged the Federal Government to discontinue fuel subsidy, saying that it has adverse effects on economy.
Ahmed who disclosed this in a press conference held recently to commemorate 28th National Economic Summit, said borrowing for subsidy expenditure is a double jeopardy to Nigeria.
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She revealed that fuel subsidy has consumed more than N2.564trillion between January and August 2022, hence, be removed by June 2023.
“First, we have to engage. We have already engaged with the states and the public before it was approved as part of the medium-term plan.
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“We have to do it by systematically informing the citizens about the size and the quantum of the fuel subsidy. We also have to educate them about the opportunity cost of what we are unable to do because of the fuel subsidy.
“It is not money that we have; it is money that we have to borrow to maintain the fuel subsidy.
“Some countries introduced subsidy during the COVID-19, and because of the Russia-Ukraine conflict, but they are using their money to fund such subsidy.
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“In our case, we are borrowing to pay the subsidy; that is double jeopardy. It is something that has to stop. We are glad that majority of people in decision-making positions, including the political parties, have agreed that subsidy is not sustainable.”
