FG Makes U-Turn, Suspends Fuel Subsidy Removal Indefinitely

The Federal Government on Monday beat a tactical retreat as it announced an indefinite suspension of its planned removal of petrol subsidy by June 2022.

The government’s position was announced by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed shortly after meeting with the President of the Senate, Ahmad Lawan at the National Assembly, Abuja.

Ahmed pointedly said that the suspension of the subsidy removal is till further notice.

Also speaking on the subject matter, the Minister of State, Petroleum Resources, Chief Timipre Sylva said that there is no possibility of removing fuel subsidy now.

Sylva, who stated this at a meeting of stakeholders in the oil and gas sector which was called at the instance of the President of the Senate, Ahmad Lawan, said that it is clear to the blind and audible to the deaf that the timing for removal of fuel subsidy is wrong.

Earlier in his remarks at the meeting, the Senate President, Ahmad Lawan said that he recalled his meeting with President Muhammadu Buhari on the possible removal of petroleum subsidy which the President said he had not asked anybody to do so.

Putting it more implicitly, the Minister of State for Petroleum Resources said that the issue of fuel subsidy is strictly legislative matter, adding that since the 2022 Appropriation Act provides for subsidy up to June this year, it implies that there won’t be subsidy from July.

Sylva said that the only option left is for the National Assembly to revisit the Appropriation Act with a view to amending it to provide for subsidy beyond June 2022.

In the words of Sylva; “Law is not cast in iron”.

Also speaking, the Group Managing Director of the Nigerian National Petroleum Company Ltd, Mr Melee Kyari, said the company which has the responsibility to fill the gap in oil prices for the nation will do just that at all times.

The closed door meeting chaired by the Senate President, Ahmad Lawan, was attended by the Ministers of Finance and Petroleum (State), GMD of NNPC Ltd, top officials of the oil and gas sector and the Senate Leader.