Nigerians have been promised by President Muhammadu Buhari that fuel subsidies will end entirely in 2023.
While presenting the projected N19.76 trillion budget for the fiscal year 2023, he provided this promise.
He claims that gasoline subsidies are a significant problem for government finances and that steps have been taken to eliminate the subsidies.
The federal government was supposed to end the contentious fuel subsidy six months after the Petroleum Industry Act was signed, in June 2022.
The Minister of Finance, Budget, and National Planning, Zainab Ahmed, recently testified before the House of Representatives Ad Hoc Committee, proposing a new deadline of June 2023, claiming that the subsidy regime was unsustainable and may require the government to borrow more in 2023.
President Buhari reiterated the revised timeline for subsidy elimination throughout the presentation.
The choice to implement the revised date to eliminate the subsidy will therefore be left up to the next president, who is scheduled to take office on May 29, 2023.
More than N2.04 trillion in subsidy payments alone were made in the first seven months of 2022, according to a check on the Nigerian National Petroleum Company Limited.
Spending on subsidies totaled N210.38 billion in January, N219.78 billion in February, and N245.77 billion in March.
The federal government spent N271.58, N327.06 billion, N319.17 billion, and N448.782 billion in April, May, June, and July, respectively.