The Federal Government on Monday postponed the planned removal of subsidy on petroleum products till further notice.
The Minister of Finance, Budget and Economic Planning, Hajia Zainab Ahmed, made this known in Abuja on Monday.
Ahmed spoke at a meeting held at the Senate Wing of the National Assembly.
The meeting with the Minister of Finance was convened at the instance of the President of the Senate, Ahmad Lawan.
Those in attendance were the Minister of State for Petroleum Resources, Timipre Sylva; and Group Managing Director, Nigerian National Petroleum Corporation Limited, Mele Kyari, among others.
The Finance Minister said the Federal Government initially had the plans to remove subsidy on petroleum products from July this year.
The Minister said this was the reason adequate provision was made in the 2022 Budget for subsidy payment till June.
Ahmed said: “Provision was made in the 2022 Budget for subsidy payment from January till June.
“That suggested that from July, there would be no subsidy.
“The provision was made sequel to the passage of the Petroleum Industry Act, which indicated that all petroleum products would be deregulated.
“Sequel to the passage of the PIA, we went back to amend the fiscal framework to incorporate the subsidy removal.
“However, after the budget was passed, we had consultations with a number of stakeholders and it became clear that the timing was problematic.
“We discovered that practically, there is still heightened inflation and that the removal of subsidy would further worsen the situation and impose more difficulties on the citizenry.
“Mr. President, does not want to do that.
“What we are now doing is to continue with the ongoing discussions and consultations in terms of putting in place a number of measures.
“One of these include the roll out of the refining capacities of the existing refineries and the new ones, which would reduce amount of products that would be imported into the country.
“We therefore need to return to the National Assembly to now amend the budget and make additional provision for subsidy from July 2022 to whatever period that we agree was suitable for the commencement of the total removal.”
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