National Economic Council (NEC) suspended the planned removal of petroleum subsidy, which was scheduled to occur by the end of May, by President Muhammadu Buhari’s administration. During the NEC meeting at the Presidential Villa, Abuja, Mrs Zainab Ahmed, the Minister of Finance, Budget, and National Planning, disclosed this to the State House correspondents. The announcement received a positive response from the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC), who were opposed to the removal.

Mrs Ahmed stated that while the removal of fuel subsidy was inevitable, the timing for its removal should not be immediate. She explained that the preparatory work required for subsidy removal had to be done in consultation with the states, other stakeholders, and representatives of the incoming administration, and that the impact of the subsidy’s removal should be mitigated on the lives of ordinary people.

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The minister said that the removal of fuel subsidy must be removed earlier rather than later because it is not sustainable. She further said that there would be a formation of an expanded committee, including representatives of the incoming administration, to determine the exact time, measures to be taken, alternatives, and how to provide support to the poor and vulnerable.

The NEC has decided that the burden of the deadline for the removal of fuel subsidy would fall on the next administration, as the laws state that the removal of fuel subsidy should happen in June.

The Petroleum Industry Act (PIA) and the 2023 budget provided for subsidy only up to June 2023. However, if the removal of the subsidy is not done by June, there would be a need to revisit the Appropriation Act, do a supplementary budget, or amend the bill, and the PIA.