The Minister of State for Labour and Employment, Festus Keyamo, has given an update on the planned fuel subsidy removal by the Federal Government.
Reports emerged a few days ago that the removal will take effect in June. This implies that the next administration will be take responsibility for the implementation and whatever consequences might follow.
Keyamo who is also the Chairman, Presidential Campaign Council of the All Progressives Congress (APC), said this on Tuesday in Abuja during the launch of The Progressives Forum.
He stated that the Nigerian National Petroleum Company (NNPC) Limited is remitting all its revenue into subsidising fuel for Nigerians which makes it non-viable, adding that there is no longer any justification to retain the subsidy.
The minister said President President Buhari has directed that some measures should be put in place to cushion the effect of the removal of the subsidy on the poor.
According to Keyamo, “As a progressive party, we believe there must be intervention in the lives of the very poor and the middle class.
“That is why we have conditional cash transfers to the very poor. That is the philosophy of President Muhammadu Buhari, which is the philosophy of APC. We care a lot for the poor.
“If it were to be other government existing today as I speak with you, there would be no subsidy now.
“But President Muhammadu Buhari said before we remove it, we need to put some measures in place to cushion the effect on the poor because there is no longer any justification to retain subsidy as I speak with you today.
“We are in government, we cannot hide it again from the masses, from the people. We must all keep saying that subsidy has eaten deep into our country, into our economy.”
The minister revealed that the Nigerian government relies on revenue generated by the Federal Inland Revenue Service (FIRS), Nigeria Customs Service, and some other government agencies to pay salaries.
He added: “Nigerian National Petroleum Corporation (NNPC) is no longer remitting money to Federation Accounts Allocation Committee (FAAC). So, all the money they earn goes to subsidy. So, the government has to rely on revenue from Customs, from Federal Inland Revenue Service (FIRS), from others to pay salaries and other things.
“But it is still the sympathy that the President has for the poor because he feels that we have to put measures in place to cushion the effect on the poor before they remove subsidy. And that is why they’ve pushed it to sometime next year. The conversation on how to remove subsidy will begin.”
Read more:
Petrol Subsidy to End in June 2023, FG Gives Reasons
Festus Keyamo Gives Update on The Planned Removal of Fuel Subsidy
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