The Federal Government of Nigeria has given conditions for the removal of subsidy on premium motor spirit (PMS), also known as petrol.
Concise News learned that the conditions include: provision of alternative cushioning means mutually agreed between stakeholders to protect the economically vulnerable members of the population.
The Finance Minister, Zainab Ahmed, revealed this at the press briefing marking the end of the 2019 Spring Meetings of the World Bank and the International Monetary Fund, IMF, in Washington DC, USA, Sunday.
Ahmed, however, said the Federal Government is yet to reach any measures. Also, she disclosed that there is no immediate plan to remove fuel subsidy, contrary to speculations that have led to the emergence of fuel queues in some parts of the country.
The Minister said, “At the IMFC meetings, the Managing Director requested for a mandate to pursue some negotiations with Governors for temporary financing options for ensuring that the Fund remains adequately resourced by maintaining the current resource envelope of the Fund through borrowed resources.
”This arose partly due to the delay in completing the 15th general review of quotas.”
She called for the normalisation of trade relations among the contending parties and called for concerted efforts to support multilateralism and avoid protectionist sentiments.
“There is no imminent plan to remove fuel subsidy. We are here to discuss with the global community on various policy issues.”
Reacting to the IMF reports, Ahmed said, one of the issues that always come up in the report, especially by the IMF as a corporate body is how we handle fuel subsidies. IMF is saying fuel subsidies are better removed so that you can use the resources for other important sectors.
“In principle that is a fact. But in Nigeria, we don’t have plans to remove fuel subsidy at this time because we have not yet designed buffers that can enable us to remove fuel subsidy and provide cushions for our people. So there is no plan to remove fuel subsidy,” she added.