Government set for total removal of fuel subsidy

Posted by News Express | 16 April 2014 | 3,401 times

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The Nigerian Government yesterday moved closer towards realising its desire to totally remove fuel subsidy when the Federation Account Allocation Committee (FAAC) announced that it has adopted the recommendation of its ad hoc committee for the outright and immediate stoppage of provisions for fuel subsidy in the Federation Account.

Chairman of the States Finance Commissioners’ Forum, Mr. Timothy Odaah, told newsmen in Abuja that with the adoption of the recommendation, fuel subsidy deductions would no longer be provided for in the Federation Account.

States, according to him, would now be paid directly whatever is due to them from the account while they could use the accruals to subsidise the needs of their people.

Odaah defended the decision, saying that experiences about the fuel subsidy regime over the years showed that it benefitted the elite and managers of the funds instead of the masses.

News Express recalls that President Godluck Jonathan reaped a backlash when he removed a huge chunk of the fuel subsidy in January 2012 and had to review it following mass protests in parts of the country.

•Photo shows Chairman of States Finance Commissioners’ Forum, Mr. Timothy Odaah.

Source: News Express

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