Buhari Passes Fuel Subsidy Removal to Any of Atiku, Tinubu, Obi That Emerges Nigeria’s Next President

Buhari Passes Fuel Subsidy Removal to Any of Atiku, Tinubu, Obi That Emerges Nigeria’s Next President

  • President Muhammdu Buhari said he will be expecting Nigeria's next president to implement the removal of fuel subsidy
  • Bola Ahmed Tinubu, Abubakar Atiku, Peter Obi, and others will have to make a decision within a month of assuming office
  • Although it may be simpler now that the Port Harcourt refinery and Dangote Refineries are operating

President Muhammadu Buhari has promised Nigerians that fuel subsidy will be completely removed in 2023.

He gave the promise while presenting the 2023 budget estimates to the joint session of the National Assembly in Abuja on Friday.

According to him, fuel subsidy is a big issue in government finance, while describing the oil subsidy regime as grossly unsustainable in the current reality of low revenues occasioned by oil theft and insecurity, AriseTV reports.

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President Muhammdu Buhari fuel subsidy
President Buhari speaks on subsidy removal Credit: Presidency
Source: Twitter

He, however, said a safety net would be provided for the vulnerable members of society to cushion the effects of the policy.

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When will the subsidy be removed?

Following the signing of the Petroleum Industry Act, the Federal government was expected to stop the controversial fuel subsidy payment in six months which was June 2022.

However, in a recent appearance before the House of Representatives Ad Hoc Committee, Minister of Finance, Budget, and National Planning Zainab proposed a new date of June 2023.

The new date for subsidy removal was again reiterated by President Buhari during the presentation.

This means that President Buhari billed to leave office on May 29, 2023, will leave the decision to implement the new date to remove subsidy for the next president.

Breakdown of fuel subsidy payment in 2022

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A check on the Nigerian National Petroleum Company Limited FAAC report for August more than N2.04 trillion was spent on subsidy payments alone in the first seven months of 2022.

Payments for fuel subsidy totaled N210.38 billion in January, N219.78 billion in February, and N245.77 billion in March.

The federal government spent N271.58, N327.06 billion, N319.17 billion, and N448.782 billion in April, May, June, and July, respectively.

In seven months, NNPC remits nothing to Federal Government

Recall Legit.ng reported that the Nigerian National Petroleum Company Limited (NNPC) has not remitted into the federation account for seven consecutive months as it battles huge subsidy payments.

The company, which said it is adopting the Saudi Arabia-owned Aramco model, has deducted funds meant for the Federation Accounts Allocation Committee (FAAC) to cover petrol subsidy costs over time, resulting in zero revenue payments to the federal government.

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According to the latest report by the company, N448,78 billion was deducted in July to cover subsidy costs.

Source: Legit.ng

Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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