Wetin go happun to fuel subsidy afta June 2023?

Di federal goment of Nigeria don tok say dem go stop di payment of fuel subsidy by di end of June 2023.

Di Minister of Finance, Budget and National Planning, Madam Zainab Ahmed, tok am during di public presentation of di 2023 Federal Government budget.

She tok say for di 2023 fiscal period, di goment don make provisions of N3. 36trillion naira for fuel subsidy payment to cover di first six months of dis year.

Dis she tok say e dey in line wit di 18-month extension wey dem announce for early 2022.

As she break down di budget, di minister note say di kontri revenue performance as at November 2022 stand at 6. 5 trillion naira, wey represent 87 percent of di set target of 7. 8 trillion naira for di year.

One analysis of di key contributors to di revenue collection according to di minister of finance and planning, include one N586billion collection from di Federal Government, Customs – N15billion, independent revenue collection of N1.3trillion plus N3.7trillion collection from oda sources of revenue.

Top sectors wey contribute to di growth of di economy for 2022 na Agriculture at 23 percent, information and communications technology, trade, manufacturing wit di oil and gas sector dey contribute just about 5. 6 percent.

Di depreciation for di contribution of di oil and gas sector to di economy according to di minister represent di goment resolve to diversify di economy.

As regards tax waivers, di minister of finance announce say dem go begin withdraw di pioneer status tax waiver for companies going forward.

She say dem don forget a total of N6trillion between 2021 to date unda dia tax waiver scheme.

Di plan according to her, go help push up di federal government revenue.

Meanwhile di Buhari administration go handover to di next goment by May 2023 afta di February general elections.

Di question now na wetin go be di stand of di next Nigeria presidnet bfor di subsidy mata.

We no get di final answer yet but we go just take una through wetin three of di major candidate don tok from dia campaign regarding fuel subsidy

Atiku Abubakar

If elected president, Atiku Abubakar, wey be candidate of di People’s Democratic Party (PDP) say im go remove petrol subsidies and channel di funds towards di transportation and education sectors.

“All our earnings dey go into servicing of debt. If we fit take ogbonge step of going away from di subsidy, we go fit get enough funds to take care of di capital project to pay di salaries and overhead,” Daniel Bwala, the campaign spokesperson told a local television station on Friday.

Atiku say petrol subsidy dey contribute to 60 percent of debt to service ratio for Nigeria.

“We go fit get enough money to invest for critical areas of infrastructure like power, refineries and education if we remove subsidies,” e tok.

Bola Tinubu

Presidential Candidate of di All Progressives Congress (APC), Bola Tinubu, don tok say im no dey go back on fuel subsidy removal if dem elect am as president next year.

Tinubu hint say no mata how long pipo protest, e no stop am from removing fuel subsidy.

“How can we be subsidising fuel consumption of Cameroon, of Niger, of Benin Republic. No matter how long you protest, we are going to remove subsidy,” he said.

Di APC presidential candidate say im goment go give room to allow di private sector to thrive and im no go interfere as e go give room for collaboration.

Peter Obi

Labour Party presidential candidate Peter Obi bin don fault Nigeria fuel subsidy policy, describe am as a scam.

Peter Obi also reveal say im resolve to end di policy and channel di big amount of money wey e dey chop to critical sectors like power, healthcare and education if dem elect am as president for 2023.

E add am say di amount of money wey di kontri don spend on subsidy for di past 12 years reach to solve a lot of issues for education, health, and power.

Wetin be subsidy and how e take affect Nigeria economy?

Fuel subsidy be sometin wey dem dey call under-recovery and na im be di underpriced sales of petrol. 

Di official reason for oil subsidies na to reduce di impact of rising global oil prices on Nigerians. 

Fuel subsidy don dey di kontri since di 1970s.

Dem institutionalise am for 1977, under di regime of General Olusegun Obasanjo wit di promulgation of di Price Control Act wey make am illegal for some products (including petrol) to dey sold above di regulated price. 

Between 2006-2018 Nigeria spend about 10 trillion Naira on petroleum subsidies.

Goment don try to remove am before?

Since Nigeria transition to civilian rule for 1979, many administrations and regimes don try to comot subsidy.

President Shehu Shagari bin raise di price of petrol in 1982, from 15.3 kobo a litre to 20 kobo. 

For 1986 President Ibrahim Babangida announce partial removal of oil subsidies, which see petrol price increase from 20 kobo to 39 kobo per litre. Dis one follow di implementation of di Structural Adjustment Program wey di International Monetary Fund set. 

Den for 2012 President Goodluck Jonathan chook hand to remove fuel subsidy pata-pata. 

Di mata cause so much gbege and protest sotay di president no do and add 30% back to di fuel price. 

For June 2020, President Muhammadu Buhari administration tok say dem sef go remove fuel subsidy as dem follow give approval to di Petroleum Products Pricing Regulatory Agency to remove di price cap wey dey for petrol. 

But by March 2021, di government say dem go keep di price di same even as price of crude dey jump up - which mean say fuel subsidy still dey occur for Nigeria.