FG Declares Its Stance On Subsidy Removal

By Ikenga Chronicles April 15, 2019

FG Declares Its Stance On Subsidy Removal

The Minister of Finance, Mrs. Zainab Shamsuna Ahmed has said the federal government will not  remove subsidy at this moment because there are no buffers to cushion the effects.

The minister made this declaration at the closing press briefing at the annual IMF/World Bank Spring Meetings in Washington DC, United United States of America.

“There is no eminent plan to remove fuel subsidy, “ she declared.

She explained further that the FG has “no plan to remove fuel subsidy. If we have to remove subsidy, we will be working with various groups to look at the alternatives. We discuss this very frequently at the economic management team but we haven’t found the viable alternatives so we are not yet at the point of removing subsidy,” she said.

“We are here to discuss with the global community on various policy issues. One of the issues that always come up in the report especially, the IFM Article Four Report, is how we handle fuel subsidies. The IMF will say fuel subsidies are better removed so you could use the resources for other important sectors. In principle that is a fact to do so.

“But in Nigeria we don’t have any plans to remove fuel subsidy at this time because we have not yet designed buffers that will enable us to remove the subsidy and provide cushions for our people,” she noted.