{"id":106173,"date":"2021-11-12T08:37:59","date_gmt":"2021-11-12T07:37:59","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=106173"},"modified":"2021-11-12T08:37:59","modified_gmt":"2021-11-12T07:37:59","slug":"fg-to-pay-nigerians-transport-allowance-after-fuel-subsidy-removal","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2021\/11\/12\/fg-to-pay-nigerians-transport-allowance-after-fuel-subsidy-removal\/","title":{"rendered":"FG to pay Nigerians transport allowance after fuel subsidy removal"},"content":{"rendered":"

Minister of finance, Zainab Ahmed has stated that the federal government will pay Nigerians transport allowance after removing fuel subsidy.<\/p>\n

This was made known on Thursday by Ahmed while speaking during an interview on Channels Television.<\/span><\/p>\n

Ahmed said fuel subsidy is costing the country resources that should have been used for education and health.<\/span><\/p>\n

She described fuel subsidy<\/a> as a \u201cmajor drain and waste\u201d on the country\u2019s economy, adding that it is crucial that the country exit from the fuel subsidy regime.\u00a0<\/span><\/p>\n

The finance minister said the Petroleum Industry Act (PIA) provides that petroleum products should be deregulated, adding that deregulation will take effect in July 2022.<\/span><\/p>\n

\u201cIn making our plans at least in the 2022 budget, we assumed that this deregulation will take effect from July 2022,\u201d she said.\u00a0<\/span><\/p>\n

\u201cWhile the act was passed. The president said there would be a one-year timeframe within which implementation will be made, moving from the status quo to the provisions of PIA.<\/span><\/p>\n

\u201cWe assume that by June we will be able to exit the fuel subsidy, and we have made provision only up till June in the budget for fuel subsidy.<\/span><\/p>\n

\u201cAnd it is important that we exit this subsidy. It is costing us a significant amount of resources that we could have applied for education, health and critical infrastructure. It is a major waste and a major drain on the economy.\u201d<\/span><\/p>\n

Asked if the federal government is prepared for a scenario in which labour unions will reject fuel subsidy removal, the minister said the federal government is planning the deployment of compressed natural gas (CNG) vehicles as an alternative to petrol-aided vehicles.<\/span><\/p>\n

Ahmed said the federal government is considering the payment of transport allowance to Nigerians for six or 12 months to cushion the effect of fuel subsidy removal.<\/span><\/p>\n

She said the transport allowance will be transferred directly to the bank accounts of the right people through the help of a bank verification number and national identity number.<\/span><\/p>\n

\u201cWhat we are doing now is \u2014 we\u2019ve been negotiating with labour. We are planning and deploying CNG \u2014 which is an alternative to mass transit to PMS,\u201d she added.<\/span><\/p>\n

\u201cBut we are also looking at providing some palliatives for a large number of the population in terms of maybe a transport subsidy for a short period like six months or if it is long, maybe nine months or maximum 12 months.<\/span><\/p>\n

\u201cTransport subsidy that would be given directly to individuals. What is constraining us is the issue of registration. The national identity registration process is ongoing and we want to make sure that this subsidy goes into the hands of the right people.<\/span><\/p>\n

\u201cThat we can make transfers to people using their BVNs, account number and national identity number, and we know that it has gone to the right people.<\/span><\/p>\n

\n

\u201cThat is part of the things we are negotiating and working on. We are also engaging with the World Bank in designing a programme that will help us to provide succour for at least a minimum of 6 months, maximum of 12 months to enable us to make that transition.\u201d<\/span><\/p>\n

Asked when the fuel subsidy regime would end, she said, \u201cIf you look at what I said earlier, as from July 2022, there is no provision for fuel subsidy.<\/span><\/p>\n

Asked if Nigerians should forget fuel subsidy in July 2022, she said, \u201cYes. We are trying to see if we can make it earlier. If we are able to get the funding to provide this alternative transport allowance, then we will be able to make it earlier.\u201d<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Minister of finance, Zainab Ahmed has stated that the federal government will pay Nigerians transport allowance after removing fuel subsidy. This was made known on Thursday by Ahmed while speaking during an interview on Channels Television. Ahmed said fuel subsidy is costing the country resources that should have been used for education and health. She […]<\/p>\n","protected":false},"author":17,"featured_media":16057,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_override_bookmark_settings":[],"jnews_override_counter":[],"footnotes":""},"categories":[2],"tags":[16934,2571,15995,958],"class_list":["post-106173","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","tag-2022-budget","tag-fuel-subsidy","tag-petroleum-industry-act-pia","tag-zainab-ahmed"],"yoast_head":"\nFG to pay Nigerians transport allowance after fuel subsidy removal<\/title>\n<meta name=\"description\" content=\"Minister of finance, Zainab Ahmed has stated that the federal government will pay Nigerians transport allowance after removing fuel subsidy\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.withinnigeria.com\/news\/2021\/11\/12\/fg-to-pay-nigerians-transport-allowance-after-fuel-subsidy-removal\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FG to pay Nigerians transport allowance after fuel subsidy removal\" \/>\n<meta property=\"og:description\" content=\"Minister of finance, Zainab Ahmed has stated that the federal government will pay Nigerians transport allowance after removing fuel subsidy. 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