Nigerian Government Announces Early Phase-Out Of Fuel Subsidies

Nigeria is once again the reigning king of African crude oil production, according to the latest report from the Organization of Petroleum Exporting Countries (OPEC).
Fuel pipe
| Photo Credit: Nairametrics

On a surprise note, the government of Nigeria has made a formal public statement regarding plans to phase out fuel subsidies earlier than its previous date of June 2023.

While delivering a speech the  Minister of Finance, Budget and National Planning, Zainab Ahmed, announced the move at the World Economic Forum (WEF).

She claimed that the phasing out of petrol subsidies will start in April, other than the previous month of June.

However, this resolution is anticipated to provide great reassurance for the government, which has had to borrow to buy refined petroleum products in the past.

Furthermore, the announcement has posed a challenge to Nigerians, who have been used to benefiting from fuel subsidies in their lifetime.

The finance monster has gone ahead to reveal to natives that the move is very vital regarding the country’s long-term financial stability.

“Where there is not enough revenue for the government to buy the refined petroleum products, we have had to borrow to buy the petroleum products. So, if we take that out, that’s about N3.25 trillion. That is a significant relief, that we don’t incur any more than that number that we projected for in 2023,” Zainab Ahmed remarked.

Commenting on the current global economic decline,  asserted that with $34 billion in the nation’s foreign reserves, Nigeria is well-positioned to manage any economic loopholes projected in 2023.

“It is true we had higher reserves during the first global recession. Our reserves are now at $34 billion. So that is still a healthy level. It means we’re able to meet at least six months of imports and other expenses into the country,” she added.

In conclusion, the  Nigerian government has rendered assurance to its citizens that it will take a coordinated response from monetary,  and trade authorities Incase of any economic problem.

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