The Federal Government Wednesday said it is yet to find a workable formula to cushion the effect on the most vulnerable Nigerians, which is why action is yet to be taken on it.
Minister of Finance, Zainab Ahmed explained at the end of the federal executive council meeting, presided over by President Buhari, said that while the country appreciates the advice of the International Monetary Fund (IMF), Nigeria is a unique country as what works for others may not be operable within its context.
She said that government was therefore still discussing numerous buffer options to cushion the effect of a subsidy removal, and until a decision is reached, no action will be taken.
She said: “In some countries, they provided buses to transport people, in some countries they provide subsidies in a manner that the people that are directly requiring the subsidies.
“We have not found a way to do it. What we are doing now, the subsidy, it is everybody that it benefiting, whereas it should be the people that are really vulnerable that need the help that need the subsidy.
“So, in the Executive with the support of the legislature, we have to find a formula that will work for Nigeria. And until we do that, we should not be contemplating removing the subsidy because, indeed when we do, there will be people that will suffer. So, we are not yet there.
“We discussed this periodically under the Economic Management Team. But we still haven’t found a formula that works for Nigeria. And you know that Nigeria is unique. What works for Ghana might not work here.
“So, it’s still work in progress for and there is no intention to remove fuel subsidy at this time.”