The Federal Government says it will consider removing subsidies on Premium Motor Spirit (PMS), also known as petrol, fuel or gasoline.
Minister of Finance, Zainab Ahmed, made the disclosure on Thursday while speaking at a meeting of the IMF/World Bank.
She was reacting to the advice by the International Monetary Fund (IMF) to Nigeria and other countries who still subsidise fuel to stop doing so.
IGBERE TV recalls that the Managing Director of IMF, Christine Lagarde, had called on the Federal Government to remove fuel subsidy, saying it is the right thing to do.
Addressing a press conference on Thursday at the on-going annual joint meetings with the World Bank in Washington DC, the IMF boss said with the low revenue mobilisation that existed in Nigeria in terms of tax to gross domestic product, it was important for the country to remove fuel subsidy to boost revenue and improve government’s spending.
By so doing, she opined, the country would be able to move funds into improving health, education, and infrastructure for the people.
While describing the IMF’s advice to the Federal Government on the need to remove fuel subsidy as a good recommendation, the Minister of Finance said, “It’s good advice, but we have to implement it in a way that will be successful as well as sustainable.
“We are not in the position to wake up one night and just remove subsidy. We have to educate the
people, we have to show the Nigerian citizens what the replacement for this subsidy will be.
“So, we have a lot of work to do because subsidy removal has to be gradual and the public has to be well informed.”
