Fuel Subsidy: Buhari writes senate, requests $800m world bank loan

President Muhammadu Buhari has sent a letter to the Senate seeking approval to take a loan to the tune of $800 million from the World Bank to cushion the effects of subsidy removal.

This follows the Federal Government’s April announcement of an $800 million World Bank grant targeting 50 million vulnerable Nigerians or 10 million households, as part of its subsidy palliatives measures.

According to the Minister of Finance, Budget and National Planning, Zainab Ahmed, the disbursement of the grant is in light of the planned subsidy removal in June 2023.

Ahmed underscored that engagements are ongoing with the newly established Presidential Transition Council (PTC) and the incoming administration, to drive the palliative program, which includes the need for buses among various considerations.

The National Economic Council (NEC) on April 27 suspended the planned removal of subsidy on petroleum products by the end of the Buhari administration.

The finance minister, who announced the decision, stated that the council concluded in its recently concluded meeting that it was not a favourable time for the action.

According to her, the NEC deliberated on the matter and resolved that it cannot be removed for now.

She added that it equally agreed on the need to continue the discussion on the matter and the necessary preparatory work in conjunction with states and representatives of the incoming administration.

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