{"id":98911,"date":"2021-10-27T18:25:37","date_gmt":"2021-10-27T17:25:37","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=98911"},"modified":"2021-10-27T18:25:37","modified_gmt":"2021-10-27T17:25:37","slug":"zainab-ahmed-petrol-subsidy-stays-till-june-2022","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2021\/10\/27\/zainab-ahmed-petrol-subsidy-stays-till-june-2022\/","title":{"rendered":"Zainab Ahmed: Petrol subsidy stays till June 2022"},"content":{"rendered":"

The federal government of Nigeria has stated that there is no plan to end petrol subsidy for now.<\/p>\n

Minister of finance, budget and national planning, Zainba Ahmed said\u00a0provision has been made for the first six months of next year.<\/p>\n

According to the finance minister,\u00a0subsidy payment would stop since complete deregulation of the downstream oil and gas sector will start by July 2022.<\/p>\n

The minister stated this at a panel session during the 27th Nigerian Economic Summit (NES#27) in Abuja on Monday.<\/p>\n

\u201cIn the 2022 budget, we only factored in subsidy for the first half of the year; the second half of the year, we are looking at complete deregulation of the sector, saving foreign exchange<\/a> and potentially earning more from the oil and gas industry, \u201c Ahmed said.<\/p>\n

A top official of the Finance Ministry,\u00a0 said yesterday that the government was banking on extra-budgetary expenses for the purpose.<\/p>\n

\u201cMoney to fund petrol subsidy will be drawn from a special account domiciled in the Office of the Accountant General of the Federation (OAGF),\u201d the official explained.<\/p>\n

At the event, Prof. Doyin Salami, chairman of the Economic Advisory Council (EAC), described subsidy payment as illegal. Also, Director-General, Debt Management Office(DMO) Patience Oniha told participants that the government has so far issued N1.5 trillion promissory notes to its creditors.<\/p>\n

Salami said he had argued for a long time that subsidy needed to go since the Petroleum<\/a> Industry Act (PIA) made the payment illegal.<\/p>\n

The\u00a0 EAC\u00a0 chairman said: \u201c\u00a0 The\u00a0 PIA essentially makes illegal to pay petrol subsidy. Yes, there is a period where NNPC(Nigerian National Petroleum Corporation) and the new regulatory agencies must calibrate themselves, but at the end of this period \u2013 and I think it is about six months, which explains why the minister has said for the first half of the year, there is a provision.<\/p>\n

\u201cMy view will be if we could get it done sooner than that, it will be excellent. It releases money. The key point is simply this: we are now, any which way, at the tail end of that conversation, except if we choose not to obey the law. My sense is we will obey the law and subsidy will be gone.\u201d<\/p>\n

NNPC, the only importer of petrol,\u00a0 deducts subsidy payment from oil and gas proceeds due to the federal, state, and local governments since no provision was made for it in the 2021 budget.<\/p>\n

In seven months, petrol subsidy payments gulped N714 billion.<\/p>\n

Explaining the N1.5 trillion promissory notes issued by government creditors, Oniha, added: \u201cWe can\u2019t talk about debt alone, we must also talk about revenues.\u201d<\/p>\n

The DMO boss explained that \u201cwhen you borrow and invest\u00a0 monies wisely, it will enhance growth and development\u201d<\/p>\n

She added that that was \u201cwhy we(government)\u00a0\u00a0 issued promissory notes of N1.5 trillion approved by the National Assembly. \u201c<\/p>\n

Oniha said: \u201cWe can\u2019t talk about debt alone; we must also talk about revenues. When you borrow and invest these monies wisely, it will enhance growth and development which is why we have issued promissory notes of N1.5 trillion approved by the National Assembly.\u201d<\/p>\n

She noted that \u201cto include any debt data in the country\u2019s debt stock, it has to be approved by the National Assembly and the Federal Executive Council,<\/p>\n

The DMO\u00a0 chief admitted that Nigeria\u2019s debt service to revenue is high and should not be at the level that it is.\u00a0 She therefore called for multiple ways of growing revenue to invest in the future.<\/p>\n

She said Nigeria\u2019s Debt Management Strategy \u201cprovides a framework on how to undertake borrowings in the country\u201d.<\/p>\n

Another panelist, Taiwo Oyedele, suggested that \u201cif we want to optimise, we have to harmonise multiple taxation and multiplicity of collection agencies to ensure that revenue collection mechanisms are boosted.\u201d<\/p>\n

Oyedele, who is\u00a0 Africa Tax lead at the PwC,\u00a0\u00a0\u00a0 disagreed with some policies of the government which allows about 60 MDAs(Ministries, Departments, and Agencies) to generate revenue.<\/p>\n

According to him,\u00a0 \u201cit is impossible for that number of agencies to be involved in revenue collection. They\u00a0\u00a0 should concentrate on providing services.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

The federal government of Nigeria has stated that there is no plan to end petrol subsidy for now. Minister of finance, budget and national planning, Zainba Ahmed said\u00a0provision has been made for the first six months of next year. According to the finance minister,\u00a0subsidy payment would stop since complete deregulation of the downstream oil and […]<\/p>\n","protected":false},"author":17,"featured_media":98913,"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":[14432,20885,13745,958],"class_list":["post-98911","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","tag-foreign-exchange","tag-nigerian-economic-summit","tag-petrol-subsidy","tag-zainab-ahmed"],"yoast_head":"\nZainab Ahmed: Petrol subsidy stays till June 2022<\/title>\n<meta name=\"description\" content=\"The federal government of Nigeria has stated that there is no plan to end petrol subsidy for now.\" \/>\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\/10\/27\/zainab-ahmed-petrol-subsidy-stays-till-june-2022\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Zainab Ahmed: Petrol subsidy stays till June 2022\" \/>\n<meta property=\"og:description\" content=\"The federal government of Nigeria has stated that there is no plan to end petrol subsidy for now. 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