The Federal Government has revealed plans to make additional provisions for fuel subsidy in the 2022 budget.
Zainab Ahmed, minister of finance, budget and national planning, says the federal government will cater for subsidy on petrol in the first six months of 2022.
Ahmed, disclosed this on Monday at a meeting with the President of the Senate, Ahmad Lawan, at the National Assembly Complex in Abuja.
panel session during the 27th Nigerian Economic Summit (NES#27) in Abuja said that complete deregulation of the downstream oil and gas sector will start by July 2022.
In seven months, petrol subsidy payments gulped N714 billion, shrinking monthly revenue accrued to the federation account.
According to Ahmed, government had to reconsider its decision on the planned removal of fuel subsidy after the 2022 budget was passed by the National Assembly.
She stated that fuel subsidy was provided for in the 2022 budget to run from January till June, but after consultations with stakeholders and in view of the high inflation and economic hardship, additional provisions would be made beyond the initial period.
According to Ahmed, it has become clear that the timing for the removal of fuel subsidy will be problematic as the country still experiences high inflation.
She admitted that removing fuel subsidy at this period would ultimately worsen the condition of Nigerians, especially those struggling to make ends meet.
Sylva, on his part, aligned himself with the position of the finance minister, stressing that removing fuel subsidy this period was bad timing, politically and economically.
In his response, the Senate President appealed to the leadership of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) to shelve their planned industrial action over subsidy removal as it has become unnecessary.