The Nigerian Federal Government has announced its planning to allocate 900 billion nairas for fuel subsidies in an estimated budget of 11.907 trillion nairas for 2022.
Tamigiri Minister of Finance, Budget, and National Planning Zainab Ahmed said – in a statement – that her country expects to allocate 900 billion nairas for fuel subsidies during 2022.
The Nigerian minister expressed her regret that the subsidy imposes a huge cost on her country, adding that in some months, 150 billion nairas was spent to subsidize gasoline, while the minister highlighted the discrepancy between the Nigerian market, which provides a liter of gasoline at 165 nairas while it is sold in neighboring markets in the region at 500 nairas. Only marketers can take this product from Nigeria and sell it across the border while the Nigerian citizen does not benefit.
She indicated the possibility of allocating the support amounts and directing them to the most urgent services, depositing them in the Union’s account, and sharing them to provide education and infrastructure and reduce government borrowing.
She pointed out that her country’s budget will witness a deficit of 5.6 trillion naira, a reference oil price of 57 dollars per barrel, while the dollar price is 410.15 naira, and the country’s oil production is 1.88 million barrels per day, while the budget targets an inflation rate of 13 percent, and explained that financing the deficit of 5.6 trillion nairas by borrowing from local and foreign sources at 50 percent.