General Abdulsalami Abubakar, former Head of State, says an increase in the price of petrol will push more Nigerians into poverty.
Commenting the plan by the Federal Government to remove subsidy on petrol, Abubakar urged the authorities to thread with caution on the issue. He said: “The expected fuel price increment will push more Nigerians into poverty. Over 80 million Nigerians are still cut off by poverty. Nigeria faces a food crisis worsened by the global COVID-19 pandemic.”
According to the National Bureau of Statistics (NBS) 2019 Poverty & Inequality in Nigeria, 82.9 million Nigerians are living in poverty.
Also in 2021, the World Bank said an estimated 7 million Nigerians might have been pushed into poverty in 2020 owing to the high inflation rate.
There are indications that the price of petrol might increase to N302 per litre by July, this year when the Federal Government intends to remove fuel subsidy. Zainab Ahmed, minister of finance, budget and national planning, said the Federal Government would only cater for subsidy on petrol in the first six months of 2022 as it planned to deregulate the downstream oil and gas sector.
The announcement stirred up reactions among Nigerians, with the Nigeria Labour Congress (NLC) threatening to embark on strike if the Federal Government goes ahead with the proposed plan.