Abuja, Federal Capital Territory (FCT) – The federal government has said that it will spend around N200 billion each month to deliver social welfare packages to the poorest Nigerians in order to mitigate the effects of the elimination of gasoline subsidies next year.
Mrs Zainab Ahmed, the minister of finance, budget, and national planning, said N5,000 palliative will be distributed to an estimated 40 million Nigerians living below the poverty line to cushion the impact of the subsidy removal, which is set to begin in July next year.
It is unclear whether the recommended sum for the impoverished and most vulnerable Nigerians was provided for in the National Assembly’s existing budget for 2022.
According to the Leadership newspaper, the minister made the statements at the opening of the World Bank Nigeria Development Update on Tuesday, November 23.
The ultimate number of potential beneficiaries, according to the finance minister, will be determined by the resources available when the gasoline subsidy is removed, implying that the government does not yet have a clear execution strategy for dividing the N5,000 palliative.
She estimated that between 20 and 40 million people in the country are among the poorest, and that they will benefit.
The Nigerian National Petroleum Corporation (NNPC) has indicated that the passage of the Petroleum Industry Act (PIA) will transform the country’s oil and gas industry.
The PIA’s operationalization, according to a NNPC official named Bala Wunti, will offer certainty, competitiveness, and cost optimization to Nigeria’s oil and gas industry.