Report emerging from the ongoing IMF/World Bank meetings at Washington DC, United States of America has it that, Federal Government of Nigeria (FGN) is looking into possible removal of fuel subsidy in Premium Motor Spirit (PMS) to address economic challenges and infrastructural deficit in the country.
According to the Minister of Finance, Mrs. Zainab Ahmed, plans are underway by the Federal Government to ensure the removal of the subsidy in phases and so as not expose the citizens into unnecessary hardship.
The Minister made this disclosure on Thursday, 11th April 2019 during the ongoing IMF/World Bank meeting in the USA while reacting to the IMF’s advice given to Nigeria and other affected countries who still subsidizes fossil fuel to halt the gesture due to its enormous economic shortcomings.
More so, the IMF/World bank asserted that fuel subsidy removal would help the affected countries in boosting revenue and improve Government’s spending to build more infrastructures such as hospitals, roads, schools, and also to support education and healthcare services of their citizenry.
Most importantly, Ahmed added that FG would not take the decision overnight but will make wider consultations and come up with strategies to end the current under-recovery/subsidy in the PMS market in a manner acceptable by the members of the public.
She added that the Government would have to enlighten the people before the plan is finally actualized. Ahmed further stated that since the IMF/World Bank meetings began, she has had high-level meetings with experts on taxation and other matters of global economy. Issues discussed also include the need to build more fiscal buffers because of the slowdown in global economic growth and partly by the natural incidences that are happening around the world such as the recent cyclone in Mozambique of the Southern African sub-region.