The Federal Government says it has secured a World Bank facility worth $800m as part of palliative measures to mitigate the negative effects of the planned removal of the petroleum subsidy in June 2023.
The Minister of Finance, Budget, and National Planning, Zainab Ahmed, made the announcement while fielding questions from State House reporters after the weekly Federal Executive Council, FEC, in Abuja.
Mrs Ahmed also noted that the secured fund was ready for distribution, adding that the money is the first tranche of the palliative.
She said: “When we were working on the 2023 Medium Term Expenditure Framework and the Appropriation Act, we made that provision to enable us exit fuel subsidy by June 2023.
“We’re on course, we’re having different stakeholders’ engagements, we’ve secured some funding from the World Bank, that is the first tranche of palliatives that will enable us give cash transfers to the most vulnerable in our society that have now been registered in a national social register.
“Today that register has a list of 10 million households. 10 million households is equivalent to about 50 million Nigerians.”
The minister added that government was ready to go beyond cash transfer to cushion the effect the subsidy removal will have on Nigerians.
“We also have to raise more resources to enable us to do more than just the cash transfers and also in our engagements with the various stakeholders, the various kinds of tasks that we have go beyond the requirement of just giving cash transfers. Labour, for example, might be looking for mass transit for its members.
“So there are several things that we’re still planning and working on, some we can start executing quickly, some are more medium-term implementation,” Mrs Ahmed said.
On how much funding was received from the World Bank for the execution of the planned exit, Mrs Ahmed said: “$800 million for the scale up of the National Social Investment Programme at the World Bank and it’s secured, it’s ready for this disbursement”.
Asked if the incumbent government had been discussing subsidy removal with the incoming administration, the Minister said “there are a lot of discussions going on at different levels, including with members of the transition committee of the incoming government”.
“On the secondary question on exit of fuel subsidy, this is a commitment in the Petroleum Industry Act.
“There’s a provision that says t 18 months after the effectiveness of the PIA that all petroleum products must be deregulated, that 18 months takes us to June 2023,” she added.
