Categories: BUSINESS

Fuel Subsidy Will End By 2023, It’s Unsustainable – Buhari

President Muhammadu Buhari has affirmed that the costly fuel subsidy will end by 2023.

Buhari said this on Friday during the presentation of the proposed 2023 budget to the national assembly, in Abuja.

Buhari had presented a record N20.51 trillion 2023 appropriation bill to the national assembly, earlier on Friday.

He said the subsidy was no longer sustainable considering the current fiscal impact.

“As we seek to grow our government revenues, we must also focus on the efficiency of utilisation of our limited resources. Critical steps we are taking include immediate implementation of additional measures towards reducing the cost of governance and the discontinuation of fuel subsidy in 2023 as announced earlier,” he said.

Buhari said discontinuing the policy was necessary for the country to manage its limited resources.

However, he noted that there would be alternative provisions to curb the effects of the petrol subsidy removal.

Sponsored

“We are however mindful of the fact that reducing government spending too drastically can be socially destabilising, and so will continue to implement programmes to support the more vulnerable segments of society,” he said.

“Fuel subsidy has been a recurring and controversial public policy issue in our country since the early eighties. However, its current fiscal impact has clearly shown that the policy is unsustainable. 

“As a country, we must now confront this issue taking cognisance of the need to provide safety nets to cushion the attendant effects on some segments of society.” 

Zainab Ahmed, minister of finance, budget and national planning, had said the federal government will halt spending on fuel subsidy in June 2023.

ABN TV had reported that the Nigerian National Petroleum Company (NNPC) Limited spent N2.565 trillion on fuel subsidy payments since the beginning of the year.

This year, the federal government has projected to spend N4 trillion on fuel subsidies, and another estimated N6.7 trillion in 2023 (if the subsidy is not removed).

SPONSORED
ABN TV EDITOR

ABN TV is one of the most visited news platform across Nigeria and the world over. It has carved a niche for itself in delivering authentic, accurate news.

Recent Posts

WhatsApp Restricted In Equatorial Guinea Amid Sex Scandal

The Equatorial Guinean government has banned its citizens from using WhatsApp to download and share…

41 mins ago

Osun NSCDC Officer Reportedly Dead

An operative of the Nigeria Security and Civil Defense Corps, Osun Command, Mohammed Opatola, has…

58 mins ago

Police Arrest Two For Stripping Teenage Girls Over Alleged Theft In Ebonyi

Two men have been detained by the Ebonyi State police for stripping and flogging two…

1 hour ago

I Won’t Divorce My Wife Even If She Cheats On Me, Says Peter Obi

Peter Obi has reaffirmed his vow to Margaret Brownson, his wife, saying he would not…

1 hour ago

Ekiti Chief Judge, Adeyeye, Reportedly Dead At Age 64

Oyewole Adeyeye, the Chief Justice of Ekiti State, passed away at the age of 64,…

2 hours ago

Masters Energy Group Denies Importing Expired Rice, Blasts Purveyors Of Fake News

The management of Masters Energy Group has denied importing fake or expired rice and circulate…

3 hours ago