Breaking: FG to Replace Fuel Subsidy With N5,000 Transportation Grant for 40 Million Nigerians
- The federal government has announced the payment of N5,000 as transport grant after the removal of the fuel subsidy
- Nigeria's minister of finance, Zainab Ahmed, on Tuesday, November 23, revealed that beneficiaries would be Nigerians who make up the poorest population
- According to the minister, FG hopes to do this before June 2022 in line with the Petroleum Industry Act (PIA)
The Nigerian government will remove fuel subsidies by 2022 and replace them with a N5000-a-month transportation grant to the poorest Nigerians, The Cable reports.
Zainab Ahmed, the minister of finance, budget and national planning, made this known on Tuesday, November 23, while speaking at the launch of the World Bank Nigeria Development Update (NDU).
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According to Zainab, the grant will go to about 20 to 40 million people who make up the poorest population in Nigeria.
The minister went on to note that the final number of beneficiaries will depend on the resources available after the removal of the fuel subsidy, Arise TV added.
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The World Bank in the development update had said the poorest 40% in Nigeria consume less than 3% of the total PMS in the country, highlighting that the rich were benefiting more from the subsidies.
Though the move is set for June 2022, Ahmed said the federal government hopes to do this before then in line with the Petroleum Industry Act (PIA).
Buhari's minister announces FG's plan to pay Nigerians transport allowance
Recall that the federal government had earlier announced moves to pay Nigerians transport allowance following the removal of fuel subsidy.
The minister of finance, budget and national planning 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.
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.
Source: Legit.ng
