FG insists no plan to remove subsidy now – Independent Observers

FG insists no plan to remove subsidy now

146 0

By Andy Chukwu

The Federal Government has re-assured that it has no immediate plan to remove fuel subsidy.

Mrs. Zainab Ahmed, the Minister of Finance, flanked by Mr. Godwin Emefiele, the CBN Governor, and Senator Udo Udoma, the Minister of Budget and National Planning, said this during a media chat after a successful outing at the Spring Meeting 2019 of the International Monetary Fund (IMF) and World Bank in Washington DC, USA.

She said the government has no plan in the immediate future to implement the recent advice by IMF on fuel subsidy.

Top IMF officials during the recent meetings have advised some countries, including Nigeria to remove fuel subsidy and make their economies more competitive and efficient.

“There is no imminent plan to remove subsidy. One of the issues that always come up, especially in the IMF Article IV is how we handle fuel subsidies,” she said on Sunday.

“So in principle, the IMF would say fuel subsidies are better removed so that you can use the resources can be utilised for other important sectors, which is good advice.

“But in Nigeria, we don’t have any plans to remove fuel subsidies at this time because we have not yet designed buffers that will enable us to remove the subsidy and provide cushions for our people.”

She said the economic management team has not found alternatives to subsidy hence, the government’s decision to retain it.

The minister also disclosed the federal government’s plan to issue a N15 billion green bond to finance projects in the agricultural, power and water sectors.

“The essence is that the projects must be green, they must projects that are not contributing to carbon dioxide emissions to society.

“The first green bond was successful and all the projects that were scheduled to have been financed have been done, and the projects are at various levels of completion.”

Ahmed had previously described IMF’s advice of removing subsidies as a good one adding that the government would remove subsidies gradually

Related Post

Leave a comment

Your email address will not be published. Required fields are marked *