Malam Mele Kyari, the Group Managing Director and Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), says Nigeria should be out of subsidy regime by the end of February 2022.
Vanguard reported that the NNPC boss this at the presentation of the World Bank Nigeria Development Update, November 2021 edition titled “Time for Business Unusual”.
Kyari added that by February 2022, there will be no provision for subsidy legally, PM News also reported. He, however, said the Nigerian government has a bigger social responsibility to cater for the ordinary and will ensure that the subsidy regime is exited in the most subtle and easy manner.
According to him, fuel subsidy removal would definitely be achieved in 2022 as it was now fully backed by law.
Governors back subsidy removal, says El-Rufai
Meanwhile, Malam Nasir El-Rufai, the governor of Kaduna state, has said state governments are in support of the federal government’s plan to exit fuel subsidy regime. El-Rufai, a panelist who joined virtually, said that if the regime of fuel subsidy was not eliminated, 35 out of the 36 states of the federation may not be able to pay salaries in 2022.
He argued that kerosene which matters most to the masses had been regulated without any hitches, while diesel which was most important to transporters had also been regulated for a long time.
FG to replace fuel subsidy with N5,000 transportation grant for 40m Nigerians
Meanwhile, Zainab Ahmed, the minister of finance, budget and national planning, has said the subsidy will be replaced with a N5000-a-month transportation grant to the poorest Nigerians. According to Zainab, the grant will go to about 20 to 40 million people who make up the poorest population in Nigeria. The minister went on to note that the final number of beneficiaries will depend on the resources available after the removal of the fuel subsidy.