The Nigerian government has decided to put off cancelling fuel subsidies, Minister of Finance, Budget, and National Planning Zainab Ahmed has stated.
According to the minister, the decision was made due to the need for extra preparation and talks with pivotal stakeholders, including the new administration.
"Council agreed that the timing of the removal of fuel subsidy should not be now," Ahmed stated. "But that we should continue with all of the preparatory works that need to be done and this preparatory has to be done in consultation with the states and other key stakeholders including representatives of the incoming administration."
Ahmed also said that the government will work together with representatives of Nigerian states from the current period to June 2023.
President Muhammadu Buhari, who is set to resign in May, had planned to nix the popular but expensive subsidy in 2022 as part of fiscal and oil reforms, but backed down due to the risks of protests ahead of February's presidential election campaign.
According to researchers, Nigeria is spending more on fuel imports than it is getting from crude oil production.
Thus, in order to keep fuel prices from spiking, the Nigerian government has introduced subsidies on oil.
According to the Nigerian National Petroleum Company Limited, the country spends more than $850 million each month on fuel subsidies for 10 million households identified as vulnerable by the government.