The federal government has shelved its plan to remove fuel subsidy.
Minister of Finance and Economic Planning, Mrs Zainab Ahmed, disclosed this in Abuja Monday shortly after a meeting with Senate President, Ahmed Lawan.
The minister said the government would no more remove subsidies on fuel as planned and announced late last year.
The federal government had in November 2021 said, fuel subsidy will end by February this year. Conveying the government plan, the minister explained that the decision was in compliance with the provisions of the Petroleum Industry Act (PIA) 2021.
She said the government has also planned to commence payment of N5,000 to 40 million poorest Nigerians as a measure to douse the pains and sufferings Nigerians would face as a result.
To complement the minister’s pronouncement, the group managing director of the Nigerian National Petroleum Company (NNPC), Mele Kyari said, fuel prices will also surge from N165,.00 to between N320- to N340 per litre.
The NNPC chief executive further said the new price o the product would be effective from February ending at the expiration of fuel subsidy.
But only last week, the president of the Senate, Ahmed Lawan stated that the National Assembly was yet to be informed by President Mohammadu Buhari about the plan to remove fuel subsidy.
He said he was not aware of any plan by the government on fuel subsidy removal.
It would be recalled that at the weekend the Nigerian Labour Congress (NLC), the Trade Union Council (TUC) and other organised labour organizations threatened total industrial action if the government goes on with the plan to remove fuel subsidies.