The Federal Government has said it is not backing out on its policy on the removal of subsidy on Premium Motor Spirit (Petrol) and electricity.
Minister of Finance, Budget and National Planning, Zainab Ahmed, who disclosed this during a virtual public presentation of the highlights and breakdown of the 2021 Appropriation Act on Tuesday in Abuja, said no provisions were made in the 2021 budget for subsidy.
“We are not bringing back fuel subsidy. We didn’t make provision for fuel subsidy in the budget. The impact of what was done was reducing some of the cost components that were within the template.
“And also related to it, on matters of electricity subsidies, no provisions have been made for subsidy for fuel and no provisions have been made for subsidy for electricity,” the minister explained.
The Federal Government had in early 2020, announced the full deregulation of the downstream sector of the oil industry which culminated in the removal of petrol subsidy.
The government said that following a sharp drop in revenue, it was becoming increasingly unsustainable for it to continue to subsidize the product with funds that can be used for the development of critical infrastructures in the country.
On the electricity tariff, the government said the removal of subsidy would ensure the implementation of the right pricing for power and also assist in attracting the n investment in the sector.