FG To Share $800 million Among 50 million Nigerians After Removal Of Fuel Subsidy

The World Bank has handed Nigeria $800 million to disburse to vulnerable households after the removal of subsidy on the premium motor spirit (PMS).

Nigerian government already slated June as the last month for fuel subsidy payment after postponing the removal in January 2022. 

According to the Minister of Finance, Budget and National Planning, Zainab Ahmed, the $800 million has been earmarked for 10 million households, which is equivalent to 50 million Nigerians.

Ahmed said this on Wednesday, disclosing that it is the first tranche of palliatives for the most vulnerable in the country.

The palliatives will include cash transfers and bus provision for workers, amongst several other palliative measures that are being planned as the Federal Government commences meetings with relevant stakeholders. 

“Also, when we were working on the 2023 medium-term expenditure framework and the appropriation act, we made that provision to enable us exit fuel subsidy by June 2023. 

“We are on course, we’re having different stakeholder engagements, we’ve secured some funding from the World Bank, that is the first tranche of palliatives that will enable us give cash transfers to the most vulnerable in our society that have now been registered in a national social register. 

“Today that register has a list of 10 million households. 10 million households is equivalent to about 50 million Nigerians. 

“But we also have to raise more resources to enable us to do more than just the cash transfers and also in our engagements with the various stakeholders, the various kinds of tasks that we have go beyond the requirement of just giving cash transfers. Labour, for example, might be looking for mass transit for its members. 

“So, there are several things that we are still planning and working on, some we can start executing quickly, some are more medium-term implementation,” she said. 

Ahmed stated that the $800 million is ready for disbursement and it will scale up the National Social Investment Programme (NSIP). 

Speaking further, the finance minister said: “We are currently engaging with all the stakeholders. We know that various plans are being considered, including the need for buses by the Labour, amongst several other palliative measures.”