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“How fuel subsidy proceeds will be spent” – Okonjo Iweala

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Fuel Subsidy in Nigeria – Much has been discussed about the pros and cons of the removal of fuel subsidy in Nigeria. However not as much media attention has been paid to how the gains from the subsidy removal will be spent across the economy. ngozi okonjo iweala

Coordinating Minister for the Nigerian economy, Dr. Ngozi Okonjo Iweala itemized the Government’s intended use of the fuel subsidy gains at the recent townhall on fuel subsidy titled: Removal of Fuel Subsidy : In whose Interest?

According to the Minister, the subsidy proceeds will be used to support two predominant areas:

1. Social Safety Nets

“The revenue from these subsidies will be used to produce social safety net programmes for the poor in the society. These are programmes designed to touch the poorer people in our society.  So we are looking at youth employment programmes. There are many unemployed youths. The Federal Government has introduced a youth programme: You-Win, where we are looking at empowering the youths.  Some of the money would go towards that. The other is urban mass transit, which is to improve the services of people within the society as well as to enable them move around.” – NOI

2. Vocational Training Skills

“In this country, typically, when we are building a house, we find out that the carpenters, plumbers; most of them that we engage are foreigners from Togo, Niger and other neighbouring countries. Why? When we have our youth who are unemployed?  Why can’t we train them to be able to render such services? We are going to train them. These are projects we are going to look at. So you (Nigerians) should be able to hold government accountable.” – NOI

Do you support the Nigerian Government’s intended use of the fuel subsidy proceeds?

See also

Subsidy Haram?

Fuel Subsidy Removal: In Whose Interest? – A Report

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  • Shittu S. O.

    Nonsense, these people always assume we are all stupid in Nigeria, which TOWN'S hall meeting was that and who were those at the meeting? Copying Obama indeed is that what you call a TOWNHALL meeting holding in corruption infested Abuja with thieves in attendance. Furthermore Iweala has really sounded clearly she's not in tune with what's happening in Nigeria, there are fewer Ghanaians everyday as they are returning to their ever improving country Nigeria has millions of carpenters, plumbers, painters etc just call and they will show so stop fooling about with us.

  • Pero

    Okonjo cant even explain why d subsidy of fuel will be remove,cause what i just red now is totaly stupid reason frm dis woman inshort am not sure she said that rubbish

  • Jide Ben

    There is no doubt dat removal of subsidy will bring about developments as canvassed by Okonjo BUT: Let refinary work 1st, Reduce d nos of appointees e.g SA, SSA. Spc adviser, Let Nigeria operate only 1 legislative chamber, prefarably senate, sent d reps bak to deir villages. Na so i see am

  • AZ

    NO… What Okonjo Iweala said is just a propaganda to me. are they not ashamed if they really mean this, why wont they include it in the budget that is what we have. or they can not manage our resources to supply us our need. so we have to pay for the service we are not sure of. this is really embarrassing for her to say this publicly. if they can leave this vital issue out of budget then what is there in the budgetary for us or it's all to enriched there own pulse.

  • Yohanna A. Timothy G

    Is very quite unfortunate that, our team of ministers are messing up the country with misplace priority, or else How can the minister of finance said, “The revenue from these subsidies will be used to produce social safety net programmes for the poor in the society'' My question is, what happen to the monthly allocation given to them? Year in year out Budget are being done without any implementation of the said program. How can the so called TO WIN program will be of help to remote villagers who cannot have access to internet. How honest will the program maintain continuity and solve the problem of corruption in Nigeria? in my candid opinion, I don't think removing the fuel subsidy will be of any benefit to us. Is just like trusting huge amount of money to a hand of corrupt leader when he cannot even handle the one's given to them.

  • http://www.uniosun.edu.ng N. E. Attah

    This woman was not like this in her first coming under Obasanjo. Her argument is too shallow. The truth is that Jonathan and other members of the political class want to feast on the subsidy. I can assure you nothing will get to the youth. God save Nigeria!

  • http://www.UPNAIRA.blogspot.com Tosin

    Subsidizing fuel importation is against the stated economic goals of Nigeria. Remove the subsidy. As they all said, it will free up cash for development and refineries and all the good things (it's now they remember, abi?)

    The same day the subsidy ends, the spending on the Presidency, the Legislature, the perks of "office", should be HALVED. This would also free up cash for development. Since we've been complaining about recurrent expenditure…now is the time.

  • seun

    The removal of fuel subsidies is really in the interest of Nigerians. we cant continue to susbidies consumption. More need to be done on local production. I believe Dr. iweala meant well for Nigerians.

  • Voice

    Nigeria petroleum is the most expensive within the opec countries for example a liter of fuel sales for 17 in Saudi and we buy it here at 65 naira, let the government tell us how much they buy fuel from other country and how much is the amount the subsidize fuel? If truly there is anything like fuel subsidy we are supposed to be buying it less them 20 naira. My take on this is that, THERE IS NOTHING LIKE FUEL SUBSIDY. Fuel subsidy is a scam, it does not exist. By the way what ministry is fuel subsidy under?

  • Akintunde

    This is Errant Nonsense,even if any useless town hall meeting,what they plan to use it for is totally Uncalled for.Those projects are too petty and will nt offset the effect.Even if they do this,they'll reverse it.By the time,Governors are being burnt alive.I wonder what GEJ is up to,there's really something fishing.

  • Akintunde

    Seun,dnt be stupid.I guess you are a fat-bellied Nigeria,so you dnt have an idea of what is coming

  • Akintunde

    We are not asking them to sell at Saudi's Price.We're just saying they should not elevate our Hunger,we're hungry already now they want to make us thirstier.Even they meant Good,they are too non-challant to help ensure the Success.Imagine that Dummy(GEJ) smiling around when we're dying on Xmas.

  • steven

    @ seun, Iweala and GEJ una no get sense at all, dnt tell me the subsidy will will be used on Vocational Training Skills

    “In this country, typically, when we are building a house, we find out that the carpenters, plumbers; most of them that we engage are foreigners from Togo, Niger and other neighbouring countries. Why? When we have our youth who are unemployed? Why can’t we train them to be able to render such services? We are going to train them. These are projects we are going to look at. So you (Nigerians) should be able to hold government accountable.” – NOI

  • http://None Felix

    D suppose gains to b inherent frm dis removal of fuel subsidies is wat i wil term "white noise" so they mearnt to tell us they can nt tackle youth unemployment nd poverty alleviation? Without removal of fuel subsidy. Iweala nd presido are confusionist! Nw they've had many travellers trapped coz of d 150% hike in transportation prices.

    They should look at d negative aftermath effect of this subsidy tin… And focus on infrastructural development frm d millions of dollar daily proceeds(revenue) into 9geria.

  • Chikezieprince

    The removal of fuel subsidy is not for our own interest but for yours(GEJ&NOI).How can you use that kind of announcement to usher us into a new year?Is your salary and allowances not enough for you?How can you use that to add to our suffering?

  • christian ola

    Now,many nigerians are in different prisons in the world just because of bad government,now what do u think that will happen before middle of this year? sure most youths will be strugling for visas just to leave that country,fly abroad and engage themselves in anything atall just to earn living since their so called country is a disapointment.

  • christian ola

    am presently in vienna austria,i wish nigerians in nigeria should see how their fellows survive here.

    Am a young man of 32 years,i and few of my friends planed to return home and settle,join busines by easter 2012.but since 2days ago,we asked ourselves,how are we going to make it in such country which wakes up and implement what is not going to help but kill people? am not sure we are going to make the move anymore till——————–

  • Abdul-Ganiy Jaji

    What a pity for my idol, Dr. Ngozi Okonjo-Iweala, as a Minister of Finance of our great country, Nigeria at this time. Our past leaders have played on our intelligence all these while regarding our resources. As the Federal Government announced the former Chairman of Cadbury, Dr. Christopher Kolade as the Chairman of the Reinvestment and Empowerment Board to oversse the proceeds of the subsidy, my candid opinion is that Nigeria will be Great once again, In-sha Allahu. It will be well with Nigeria. Let us all pray fervently for the recovery and sustainance of our dear country. We have no where call our country. GOD BLESS NIGERIA!

  • Ajanaku

    Jonathan is a stupid man for introducing such subsidy @dis very time. Why cant he put himself in d shoes of d masses… Am a corper serving @ ebonyi state;am trapped big time!

    • Adiele Jonathan

      In leadership,u cannot please everybody.GEJ is an example of a good leader

  • GaAD

    I just saw this Morning that d price of filling a cartank in venezuela is 2dollars…..I smh for Nigerian leaders…GEJ has just shown how clueless he is in running a government. Instead of dealing with the loop holes in the corrupt civil service that connive with the business men that capital on d subsidy he is choosing an easy way out of taking out d subsidy just bcos Okonjo Iweala says so…please GEJ has no clue on running a govenment of this magnitude…can he pls step down if removal of subsidy is his only solution to providing basic amenities to Nigerians. God bless NIGERIA!!

  • gbenga emmanuel

    If d Mr. President and his cabinet knw dt they want to introduce youth empowerment, they shld do dt by reducing d allowance given to them and lend the government from their own pocket in executing the falsify project they are tendering in the front of Nigerians. Govt is telling us that we dnt hav money to cary out this project, so where are they seeing money which they are av bn embezzling since al this while. Jonathan is trying to bcom treath to this nation. I pray GOD wil save us 2ru 4m his toothless treath.

  • felix azj

    life is a mistery in itself,gudluck more mistrerier,we can't realy ascertain his reason 4 wht he did,but in which eva way it is,he may av his reason which he beleives might favor we nigerians,let giv him tym 2 execute his plan,one tin l knw nigerians ar very gud at is d ability 2 adapt 2 any situation,we wil live 2 see d outcome.mr presido put nt d people dat vote u into power on hold,all eyes ar o U o!!

  • Bernard Ifowodo

    All the time The Leadership of Nigeria talks about a program to help the youth and develop the youth, as if that has always been the priority for Democracy in the country. With a complete collapse and drop of the standard of education. I wonder how you want to help somebody without providing the right conditions for development to take place. Before Nigeria came into existence, education was an omnipotent tool to unity, communication, development and independence. How can Mr President and members of his cabinet tell us how the citizens of Nigeria will benefit from subsidy and the idea has not been implemented before now. Maybe!, the first test of the subsidy will be on the power sector, then other areas can follow through. That, is what I call the Nigerian 21st century approach to solve youth problem and a beneficiary package for all Nigerians ………. Sorry ohps! The poor masses.

    Everybody benefits from the Internet but not without the knowledge of the internet.

  • chibyk

    truth be told this fuel subsidy removal & deregulation of the down stream sector will be a very effective policy in the long run because after conducting a cost-benefit analysis it showed that its a very sound policy,but the timing is very wrong..also the cost of achieving this policy via fuel pump price is very high.i suggest that they should reduce the fuel price by reducing their recurrent expenditure from d budget,bcos there is not going 2 be dev.in a country wia d rec.exp is more than d capital exp.secondly the govt should work on the trust issue btw them & the people.