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FG needs N3t to fund oil subsidy – Finance Minister

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…NNPC presents memo to FEC

ABOUT N3 trillion will be needed by federal government to fund the suspended fuel subsidy removal that was announced by President Muhammadu Buhari.

  Minister of Finance, Budget and National Planning, Zainab Ahmed, gave the figure while briefing State House Correspondents after a weekly Federal Executive Council (FEC) meeting chaired by President Buahri in Presidential Villa, Abuja, yesterday.

  Explaining that the amount will be required to continue subsidising petroleum products for the 18 months extension recently approved by government, Ahmed also disclosed that Nigerian National Petroleum Corporation (NNPC) presented a memo for FEC’s deliberations to cover the N3 trillion.

  Ahmed further explained that NNPC had earlier presented a request for N3 trillion from Ministry of Finance for 2022 reflecting current realities on ground, especially prevailing poverty rate among Nigerians.

  According to her, only N443 billion is presently available in the 2022 budget meant to accommodate subsidy from January to June.

  “What this means is that we have to make incremental provision of N2.557 trillion to be able to meet subsidy requirement which is averaging about N270 billion per month,” she said.

  It will be recalled that owing to pressures from organised labour groups, civil societies and a cross-section of Nigerians, President Buhari approved an 18-month extension for implementation of full subsidy removal.

  Federal Executive Council (FEC) also deliberated on some pending road contracts across the federation and voted the sum of N52.8 billion for their completions.

  Among the roads that benefitted from the approval were Aba to Owerri road in Abia and Imo States, as well as phase II of Ikot-Ekpene border road in Cross River State and Offa Bypass road in Offa Local Government Area of Kwara States, among others.  

  Senior Special Assistant to the President on Media and Publicity, Garba Shehu, disclosed the contracts after the meeting with newsmen on behalf of Minister of Works, Babatunde Fashola.

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