The Federal Government of Nigeria has rescinded its decision to withdraw fuel subsidies, consequently, budgeting 3trillion Naira (US$7.22 billion) as fuel subsidy in the 2022 Budget following pressure from the citizens.

The government announced last year that it would withdraw fuel subsidies in 2022, thus sparking controversy among industry players and consumers.

However, the Buhari administration backtracked after remonstrations from Nigerians.

Speaking at the Federal Executive Council (FEC) meeting last week, Nigeria’s Minister for Finance, Budget and National Planning, Zainab Ahmed, said the Nigerian National Petroleum Corporation (NNPC) has presented the N3 trillion bill to the Federal Executive Council (FEC) as what is required for the whole of this year to extend the payment of petroleum subsidy.

She explained that realities on the ground, including the present hardship faced by Nigerians and the lack of structures to support subsidy removal, resulted in the NNPC making a request of N3 trillion from the Ministry of Finance for 2022.

“What this means is that we have to make incremental provision of N2.557 trillion to be able to meet subsidy requirement which is averaging about N270 billion per month,” she said.

She said the request was considered by FEC, which directed the ministry to approach the National Assembly for an amendment to the fiscal framework as well as the budget.

Last Wednesday, the Minister of State for Petroleum Resources, Timipre Sylva, met with the Major Oil Marketers Association of Nigeria (MOMAN) over the N3 trillion subsidy payment.

Source: https://energynewsafrica.com