Nigeria’s federal government says it will remove fuel subsidy by 2022 and replace it with a N5000-a-month transportation grant to the poorest Nigerians.
Zainab Ahmed, minister of finance, budget and national planning, disclosed this while speaking at the launch of the World Bank Nigeria Development Update (NDU) on Tuesday.
Mrs. Ahmed said the grant will go to about 20 to 40 million Nigerians who make up the poorest population of the country.
According to her, the final number of beneficiaries will depend on the resources available after the removal of the fuel subsidy.
The World Bank in the development update had said the poorest 40% in Nigeria consume less than 3% of the total PMS in the country, highlighting that the rich were benefiting more from the subsidies, Cable reported.
Ahmed said this move is set for June 2022, but the federal government hopes to do this before June — in line with the Petroleum Industry Act (PIA).