Subsidy removal to begin soon, says FG.
In line with the advice from the International Monetary Fund (IMF), the federal government is set to remove fuel subsidy as part of its plans to boost revenue.
Zainab Ahmed, the Minister of Finance, dropped the hint on Thursday while reacting to the IMF’s advice to Nigeria and other countries on fuel subsidy removal.
IMF believes that the removal of fuel subsidy would not only salvage the situation of revenue collection but will also improve government’s spending to build more roads, schools, hospitals and support education and health for the masses.
Ahmed said: “It’s good advice, but we have to implement it in a way that will be successful as well as sustainable.
“We are not in the position to wake up one night and just remove subsidy.
“We have to educate the people, we have to show the Nigerian citizens what the replacement for this subsidy will be.
“So, we have a lot of work to do because subsidy removal has to be gradual and the public has to be well informed.”
Ahmed also stressed the need to build more fiscal buffers slowing down the global economic growth and partly by the natural incidences that are happening around the world.
“For Nigeria, we are asking the World Bank to review some of the initiatives that involve them looking at implementation systems when they are providing funding for infrastructure.
“We understand that it’s well intended but we have informed them that they need to review its implementation, so that we are not overly slowed down because of the new procedures,” Ahmed stated