The Federal Government says it is yet to devise a workable formula for the removal of fuel subsidy.
Speaking at the end of the Federal Executive Council (FEC) meeting, on Wednesday, Minister of Finance, Zainab Ahmed, said removal of subsidy would have negative effect on vulnerable Nigerians.
Recall that Managing Director of the International Monetary Fund (IMF), Madam Christine Lagarde, had advised Nigeria and other countries to remove fuel subsidy, saying the money spent on subsidy could be re-directed to health and education.
Four days after making the suggestion, Minister of State for Petroleum Resources, Ibe Kachikwu, said the landing cost of petrol was now N180 per litre with the Federal Government spending N1.86 billion on subsidy daily.
The minister also explained that while the country appreciates the advice of the IMF, what works for others may not be operable within Nigeria’s context, describing the country as unique.
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She said the government is still considering various options and until a decision is reached, no action would be taken.
In her words,“In some countries, they provided buses to transport people, in some countries they provide subsidies in a manner that the people that are directly requiring the subsidies,” Ahmed said.
“We have not found a way to do it. What we are doing now, the subsidy, it is everybody that it benefiting, whereas it is the people who are really vulnerable that need subsidy.
“So, in the Executive with the support of the Legislature, we have to find a formula that will work for Nigeria.
“And until we do that, we should not be contemplating removing the subsidy because, indeed when we do, there will be people that will suffer. So, we are not yet there.
“We discussed this periodically under the Economic Management Team but we still haven’t found a formula that works for Nigeria. And you know that Nigeria is unique. What works for Ghana might not work here.
“So, it’s still work in progress for and there is no intention to remove fuel subsidy at this time.”