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Subsidy removal: FG to pay 40 million poor Nigerians N5,000

Federal-Government-reduces-2020-budget-size-to-N9.7tn

The federal government (FG) has designed measures to cushion the negative impact of the removal of the subsidies on the most vulnerable 40% of the population ahead of the target date of mid-2022 for the complete elimination of fuel subsidies.

One of such measures would be to institute a monthly transport subsidy in the form of cash transfer of N5,000 to between 30 to 40 million deserving Nigerians.

Minister of Finance Budget and National Planning Mrs Zainab Ahmed made this disclosure in Abuja on Tuesday at the launch of the Nigeria Development Update.

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According to the finance ministry, “with the expansion of social protection policies during the pandemic, the government has an opportunity to phase out subsidies such as the PMS subsidy while utilizing cash transfers to safeguard the welfare of poor and middle-class households”.

To this end, FG she said “intends to accelerate our structural reforms, particularly in the power sector, in governance, in business environment to unlock the huge potentials of the economy, scale up social safety net and deepen financial inclusion to reduce poverty and inequality gaps”.

“We will carefully calibrate the sequencing of these reforms to manage their attendant political fallouts”.

Zainab Ahmed noted that government is optimistic that “the recent developments in the oil sector, such as the Petroleum Industry Act (PIA) 2021, the full reactivation of the four public refineries in the country, and the completion and coming on stream of the three private refineries under construction in 2022, would significantly boost contribution from the sector to our economic growth efforts”.

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