Essential Ndubuisi
The Federal Government is awaiting legislative approval to disburse $800 million to 50 million vulnerable Nigerians as a cushion against the shock of fuel subsidy removal in June. The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, disclosed this at the 2023 Spring Meetings organized by the International Monetary Fund (IMF) and the World Bank.
According to the Minister, the program has secured the nod of the Federal Executive Council, and preparatory works are in top gear pending approval by the legislative arm of government. She explained that a social register is being built to be used for electronic transfers of the funds.
Mrs. Ahmed acknowledged that fuel subsidy removal would lead to inflation, but the discomfort would be short-lived, as it would benefit the country in the long run. She also refuted reports that $23.3 million was paid to consultants to secure the $800 million, saying the funds were raised through discussions with the Debt Management Office, the Ministry of Finance, and the World Bank Country Office in Nigeria.
The Minister also called for increased investments in the oil and gas sector, noting that the Nigerian National Petroleum Corporation Limited has been unable to increase investments due to the funding of fuel subsidies. She called for the removal of fuel subsidies to free up resources for investment in the sector and the social sector.
Mrs. Ahmed also urged the speedy implementation of the G20 Common Framework on Debts, expressing concern over delays in debt restructuring for some countries. She encouraged cooperation between creditors and affected countries to ensure the completion of programs.
