The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, has described fuel subsidy as a major waste and a drain on the Nigerian economy,saying the government plans to replace it with transport subsidy to assuage the effect of its removal on the masses for a short period.
![](https://thenigerialawyer.com/wp-content/uploads/2026/09/2026-IDRI-Masterclass.png")
Ahmed said this on Thursday while speaking on the Channels Television’s Politics Today show.
She said, “The Petroleum Industry Act that has been passed has a provision that says petroleum products should be deregulated, which means there should be no subsidy of any petroleum product. In making our plans, we assume that this deregulation would take effect from July 2022.
“It is important that we exit the subsidy. It is costing us a significant amount of resources that we could have applied for education, health and critical infrastructure. It is a major waste and drain on the economy.”
According to her, fuel subsidy only benefits people with several cars, and not the masses.
She said, “Who is benefiting from this subsidy? It is the people with a number of cars that they run. It is not the person entering a bus from the village to the market. If you look at those large mass transit buses, they run on diesel and diesel is deregulated.
“If you look at trucks that carry goods from farm to market, they run on diesel. What the common man use for cooking is kerosene; that also is deregulated. So, why should we continue to keep the subsidy for a product that is only benefitting the people that can actually afford the market price?”
She added, “We are looking at providing some palliatives for a large number of the population, in terms of a transport subsidy for a short period like six to 12 months. Transport subsidy that would be given straight to individuals.
“What is constraining us is the issue of registration. The national identity registration process is ongoing, and we want to make sure that this subsidy goes into the hands of the right people, that we can make transfers to people using their BVN, account number and NIN, and we know that it is has gone to the right people. That is part of the thing we are negotiating and working on.
According to the minister, the government is also engaging with the World Bank in designing a programme that will help to provide that succour for a minimum of six months and a maximum of 12 months to enable us the government make the transition.
She said the government was considering the possibility of ending fuel subsidy before July 2022.
She said if the government is able to get the funding for the transport subsidy, then the removal of the fuel subsidy would be earlier than planned.
[A MUST HAVE] Evidence Act Demystified With Recent And Contemporary Cases And Materials
Available now for NGN 40,000 at ASC Publications, 10, Boyle Street, Onikan, Lagos. Beside High Court, TBS. Email publications@ayindesanni.com or WhatsApp +2347056667384. Purchase Link: https://paystack.com/buy/evidence-act-complete-annotation
______________________________________________________________________ “Enhance Legal Practice With Authoritative Reports” — Alexander Payne Offers Comprehensive Law Reports, Spanning Over A Century Of Nigerian Jurisprudence
Interested buyers are encouraged to place their orders and enquiries via:
0704 444 4777, 0704 444 4999, 0818 199 9888
Website: www.alexandernigeria.com
“A Comprehensive Guide To Evidence Law” — Releases Second Edition In Three Volumes, Covering 4,051 Cases
For enquiries and orders, contact: 08035526491 Email: jerryamadisilk@gmail.com
Prof. Jerry Amadi’s Evidence Law, Second Edition (2026), contains 3,314 pages in three volumes, covering the Evidence Act 2011, its 2023 amendment, and 4,051 Nigerian and English cases.
