Nigeria's Minister of Finance Zainab Ahmed speaks during a panel discussion at the headquarters of the International Monetary Fund during the Annual Meetings of the IMF and World Bank in Wash
Finance Minister Zainab Ahmed, announced that Nigeria will maintain its expensive but well-liked petrol subsidy until mid-2023 and has budgeted 3.36 trillion naira ($7.5 billion) for it.
Africa's largest economy spent 2.91 trillion naira ($7 billion) on a fuel subsidy between January and September 2022, according to state-owned company NNPC.
This expense has been attributed by the government to the country's deteriorating public finances.
After lawmakers boosted the size by 6.4% and hiked the oil price assumption, President Muhammadu Buhari on Tuesday signed the 2023 budget, which totals 21.83 trillion naira ($49 billion).
"Petrol subsidy will remain up to mid-2023 based on the 18-month extension announced early 2022," Ahmed said.
In October, Buhari declared that the nation would end the fuel subsidy in 2023 after Nigerians elect a new president in February.
Nigeria's 200 million-person nation's successive governments have attempted and failed to eliminate or reduce the subsidy, which is a politically delicate topic.
According to the World Bank, inefficient resource use is impeding Nigeria's efforts to develop, and the nation is being urged to eliminate subsidies for gasoline, power, and foreign exchange that mostly benefit affluent households.