Minister of Finance, Zainab Ahmed, has called for the removal of fuel subsidy.
Ahmed said the retention was hurting the economy and impeding investments in human capital development.
Speaking in Abuja at the launch of the Nigeria Development Update (NDU) 2022 report by the World Bank, Ahmed explained that if subsidy was not in the budget, there would be no need to borrow money to finance it.
According to her, the PMS subsidy that we are currently paying for harms Nigeria and prevents the government from making investments in the development of human capital, we could have spent N4.5 trillion on healthcare or education.
However, we are spending it on consumption, which is highly inefficient given how many Nigerians own automobiles and receive subsidies for them. She added.
Ahmed recalled that the elimination of subsidies was originally scheduled to begin in June 2022 but was delayed by a further 12 to 18 months.
Anambra Governor Charles Soludo stated that the scrap was long overdue in his words.
According to the former Governor of the Central Bank of Nigeria (CBN), each state in the federation might receive around N50 billion to repair roads if N3 trillion is saved.
There will still be $1 trillion available for use by the federal government. The CBN will require money if the subsidy is maintained by the government.
The aforementioned subsidies can be brought, Soludo continued.