Categories: NEWS

After We’ve Quietly Removed Electricity Subsidy, The Next Is Fuel Subsidy — FG

The Minister of Finance, Mrs Zainab Ahmed, has revealed how the Federal Government quietly removed the subsidy on electricity tariff. She said the government had to carefully adjust the prices incrementally at some levels.

Speaking on Thursday at a virtual meeting of African Finance Ministers and the International Monetary Fund, Ahmed also said the amendment of the budget was ongoing to accommodate the incremental removal of fuel subsidy. The theme of the meeting was ‘The political economy of fiscal reforms’.

Ahmed said, “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 pushback from the polity. We have elections coming and 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.

“But we have been able to quietly implement subsidy removal in the electricity sector and as we speak, we don’t have subsidies in the electricity sector. We did that incrementally over time by carefully adjusting the prices at some levels while holding the lower levels down.

She said fuel subsidy remained a huge problem for the government as it had thrown up deficits more than what was planned. She noted that the rise in global oil prices would worsen the issue “but the current review that we are doing is to hold the subsidy at the level in which it is planned,” she said.

Sponsored

Ahmed added, “We are currently doing a budget amendment to accommodate incremental subsidy (removal) as a result of the reversal of the decision and we want to cap it at that. Hopefully, the parliament will agree with us and we are able to continue with our plan for subsidy (removal) otherwise the way things are going we will not be able to predict where the deficit will be as a result of the fluctuation in the global market.”

She stated further that the government was improving tax administration and compliance by adopting technology so as to increase revenue.

SPONSORED
Alex Enemanna

A print journalist with vast knowledge of political developments in Nigeria. Passionate about equity and fairness through robust developmental journalism.

Recent Posts

Tinubu’s Economic Reforms Not Responsible For Hunger, Stampede — FG

The Minister of Information and National Orientation, Mohammed Idris, has warned politicians against linking stampedes…

2 hours ago

Ohafia Community In Mourning As Trailer Crushes Many Christmas Travelers To Death (Photos, Video)

Ohafia, Abia State, was plunged into mourning on Sunday following a tragic accident involving a…

2 hours ago

After 25 Years, Democracy Yet To Meet Citizen’s Expectations — Bugaje

An Islamic scholar and political activist, Dr. Usman Bugaje, has highlighted the inability of the…

8 hours ago

Tinubu’s 2025 Budget Full Of Unrealistic Expectations, Says SDP’s Adebayo

The presidential candidate of the Social Democratic Party (SDP) in the 2023 general elections, Prince…

10 hours ago

VP Shettima Saddened Over Stampedes That Killed Dozens Of People, Says It’s National Tragedy

Vice President Kashim Shettima has mourned the victims of the recent tragic stampedes that claimed…

10 hours ago

Yuletide: NACA Urges Nigerians To prioritize Their Health, Know Their HIV Status

The National Agency for the Control of AIDS has advised Nigerians to prioritize their health…

12 hours ago