The current 2023 budget that President Bola Tinubu reviewed does not include a fuel subsidy scheme, hence he declared that it would be scrapped.
This was said during his inaugural speech on Monday at Eagle Square in Abuja.
The fuel subsidy is included in the current 2023 budget till June.
According to Mr. Tinubu, funds allocated for subsidies will be used instead for things like public infrastructure, education, healthcare, and employment.
“We appreciate the outgoing administration’s decision to phase out the fuel subsidy regime, which has progressively favored the wealthy over the poor. In the context of depleting resources, subsidies can no longer be used to justify their ever-rising prices.
“We shall, instead, re-channel the funds into better investment in public infrastructure, education, health care, and jobs that will materially improve the lives of millions,” he stated.
For many years, the Nigerian government has set retail pricing for petroleum products and subsidized fuel. However, the payment has put the country’s financial stability in jeopardy and affected the government’s capacity to support national development initiatives.
The federal government declared its intention to do away with the gasoline subsidy and replace it with a monthly N5,000 transportation payment for low-income Nigerians in November 2021.
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