EconomyFG to Replace Fuel Subsidy With N5,000 Transport Grant for 40m Nigerians

A sum of N5000 will be given to citizens monthly for transportation when fuel subsidy is removed according to Zainab Ahmed, minister of finance, budget, and national planning.

The minister disclosed that the FG intends to remove fuel subsidies by 2022 and replace them with a N5000-a-month transportation grant to the poorest Nigerians.

Speaking at the launch of the World Bank Nigeria Development Update (NDU) on Tuesday, the minister explained that the grant will go to about 30 to 40 million of the country’s poorest population.

“The subsidies regime in the [oil] sector remains unsustainable and economically disingenuous.

“Ahead of the target date of mid-2022 for the complete elimination of fuel subsidies, we are working with our partners on measures to cushion potential negative impact of the removal of the subsidies on the most vulnerable at the bottom 40% of the population.

“One of such measures would be to institute a monthly transport subsidy in the form of cash transfer of N5,000 to between 30 – 40 million deserving Nigerians.”

“We are very optimistic that the recent developments in the oil sector, such as the Petroleum Industry Act (PIA) 2021, hopefully, the full reactivation of the 4 public refineries in the country, and the completion and coming on stream of the 3 private refineries under construction in 2022, would significantly boost contribution from the sector to our economic growth efforts,” Ahmed added.

“I agree with the Report that with the expansion of social protection policies during the pandemic, the government has an opportunity to phase out subsidies such as the PMS subsidy while utilizing cash transfers to safeguard the welfare of poor and middle-class households.”

Beloved John (Staff Writer)

One comment

  • Avatar
    Bob lucky

    November 24, 2021 at 9:36 am

    Do I hear you say poorest? Mumu that is how you people scam people during covid-19 promising to give loans to people but at the end there was none. Stop deceiving Nigerians you are promising 5k to the poorest which the 100% will go to ur people which is the northerna. You people are stressing nigeria citizens and God will punish u people for this. My name remains Bob lucky


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