The Minister of State for Labour and Employment, Festus Keyamo, announced that plans to remove fuel subsidy will commence in 2023. Speaking during the launch of The Progressives Forum in Abuja, Keyamo, who is also the spokesperson for the Presidential Campaign Council of the All Progressives Congress (APC), emphasized that the Nigerian National Petroleum Company (NNPC) Limited is currently remitting all its revenue to subsidize fuel for Nigerians, rendering the subsidy non-viable. He stated that there is no longer any justification for maintaining the subsidy.
Keyamo further explained that President Muhammadu Buhari has instructed the implementation of measures to mitigate the impact of subsidy removal on the poor. He remarked, “As a progressive party, we believe there must be intervention in the lives of the very poor and the middle class. That is why we have conditional cash transfers to the very poor. This philosophy reflects President Muhammadu Buhari’s approach and that of the APC; we care deeply for the poor.”
He continued by asserting that if another government were in power, the subsidy would have already been eliminated. However, President Buhari has insisted on establishing measures to support the poor before proceeding with the removal, as there is no longer any justification for the subsidy. Keyamo acknowledged the need for transparency, stating, “We are in government; we cannot hide it from the masses. We must continue to communicate that the subsidy has significantly burdened our economy.”
Additionally, the minister revealed that the Nigerian government relies on revenue generated by the Federal Inland Revenue Service (FIRS), Nigeria Customs Service, and other agencies to pay salaries. He noted that the NNPC is no longer contributing funds to the Federation Accounts Allocation Committee (FAAC), meaning that all its earnings are directed toward subsidy payments. Consequently, the government must depend on revenue from Customs and FIRS to cover salaries and other expenses. Keyamo reiterated the President’s concern for the poor, indicating that measures will be implemented to alleviate the impact of subsidy removal before it takes place, which is why discussions about the subsidy’s removal will begin next year.
Comments are closed for this story.