16 Mar Finance Minister Ahmed explains how fuel subsidy will be funded
Finance Minister Zainab Ahmed says the federal government will use $2.2 billion of the fund raised through Eurobond and local borrowing to fund petrol under-recovery costs of the country.
In September 2021, Nigeria raised $4 billion through Eurobond issuance.
Subsidy or under-recovery is the underpriced sales of premium motor spirit (PMS), better known as petrol.
Ahmed spoke with Reuters on the sidelines of an Arab-African conference in Cairo.
“Rising oil prices have put us in a very precarious position … because we import refined products … and it means that our subsidy cost is increasing,” she said.
The minister said that the government was working with lawmakers to boost revenues and that the rise in oil prices means that borrowings will increase more than planned.
Oil prices have been on the rise following Russia’s invasion of Ukraine.
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