- The Nigerian government is considering the payment of transport allowance to Nigerians for a short period of time
- Zainab Ahmed, Nigeria's minister of finance, on Thursday, November 11, revealed that this would take place when the fuel subsidy has been removed
- The minister explained that the subsidy is costing the country a significant amount of resources that should have been used for education, health
The federal government is making moves to pay Nigerians transport allowance following the removal of fuel subsidy.
The minister of finance, budget and national planning, Zainab Ahmed, made the remark during an interview on Channels Television's Politics Today show on Thursday, November 11.
According to Ahmed, fuel subsidy is costing the country a significant amount of resources that should have been used for education, health and critical infrastructure.
She said the Muhammadu Buhari-led government is considering the possibility of ending the fuel subsidy before July 2022.
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Describing fuel subsidy as a “major drain and waste” on the country’s economy, the minister pointed out that it is crucial that the country exit from the regime.
She explained that the government is considering the payment of transport allowance to cushion the effect of fuel subsidy removal for a period between 6 or 12 months.
Ahmed went on to note that the allowance will be transferred directly to the bank accounts of the people through a bank verification number and national identity number.
FG reveals date for fuel subsidy removal
Legit.ng previously reported that the minister lamented the increasing pressure on Nigeria’s revenue due to daily fuel subsidy payments.
She stated that actions are being taken to stop the payment, which is why there is no provision for payment of subsidies after the first six months of 2022.
The minister said:
“In our 2022 budget, we only factored in subsidy for the first half of the year; the second half of the year, we are looking at complete deregulation of the sector, saving foreign exchange and potentially earning more from the oil and gas industry."
NNPC: Report reveals billions of Naira petrol subsidy gulped in 7 months
Meanwhile, petrol subsidy payments gulped N714 billion in the last seven months, shrinking monthly revenue accrued to the federation account.
The report explained that the subsidy or under-recovery is the underpriced sales of premium motor spirit (PMS), better known as petrol.
The report also provided a month on month breakdown of all the payments made to oil marketers from January to September.