FG Speaks on Subsidy, Reveals How EU’s Climate Change Policy Affects Nigeria

• The federal government has revealed that it suspended its plan to remove subsidies earlier this year because of the high cost of the commodity across the globe
• The minister of communication and culture, Lai Mohammed, made this disclosure and noted that this is the time when countries are putting measures in place to support their citizens in getting oil
• While noting that Nigeria cannot be exempted from supporting its people, Alhaji Mohammed blamed the EU's climate change policy for killing investment in the oil sector

The federal government has revealed why it cannot remove subsidies on the premium motor spirit (PMS), also known as petrol.

Channels television reported that the minister of communication and culture, Lai Mohammed stated this during an exclusive interview with Reuters in London.

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Why we cannot remove fuel subsidy - FG

Mohammed said many nations are putting measures in place for their citizens to cope with high oil energy prices, and Nigeria could not be exempted.

He noted that Africa's largest oil exporter imports almost all fuel its needs because of a lack of functioning refineries.

Fuel subsidies worry IMF

The international monetary fund (IMF) raised concern over the suspension plan to abolish fuel subsidies earlier this year.

But Mohammed said that the chaos, social disharmony and instability of removing the subsidies could have informed the government's decision to suspend its plan.

Lai Mohammed says EU's climate change policy is killing investment in oil sector

He blamed the European Union's policy on climate change for killing investment in the oil sector.

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"We believe that climate change is real and important for emission control, but there is a bit of double standard in the EU policy regarding climate change," Mohammed said.

Report says FG fuel subsidy payment increased by 890% in five years without justification.

Legit.ng reports that under President Muhammdu Buhari's administration, fuel subsidies payment has increased astronomically without justification.

However, a report has shown that the increase has not in any way reduced the high cost of transportation in the country.

This raised questions on why the subsidy payment and who are the beneficiaries amid the resolve by FG to continue payment.

Source: Legit.ng