The Federal Government is planning to replace fuel subsidy with a N2.4trn annual transportation grant to about 40 million poorest Nigerians.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, said on Tuesday that this will be implemented by 2022.
According to the minister, the subsidy will be replaced with a N5000-a-month transportation grant to the poorest Nigerians.
She disclosed this at the launch of the World Bank Nigeria Development Update (NDU).
Minister of Humanitarian Affairs, Disaster Management and Social Development,Sadiya Umar Farouq had in February said 26.8 million Nigerians are extremely poor, a number that experts believe is on the rise.
But Ahmed said the grant will go to about 20 to 40 million Nigerians who make up the poorest population of the country.
In her presentation, she said the final number of beneficiaries will depend on the resources available after the removal of the fuel subsidy.
By implication, Nigeria will spend N200bn monthly if 40 million beneficiaries are targeted.