Fuel subsidies to continue in Nigeria despite low budget
Nigeria's fuel subsidies will remain untouched despite growing concern over their inefficacy and huge cost, said President Muhammadu Buhari, as reported by News Nigeria.
At a time of economic difficulties, when the government is suffering the constraints of an increasingly tight budget after being forced to bail out public entities swamped with debt, President Buhari was advised to cut the fuel subsidy programme due to the corruption of operators and its proven inefficiency.
“I have received … literature on the need to remove subsidies, but much of it has no depth,” said Buhari in a statement.
The government has reportedly announced a renewed scheme for the third quarter which reveals little change to its predecessors. A similar number of companies will be allowed to import just over 1.5 million tonnes of gasoline.
For President Buhari there are more pressing issues facing the petroleum retailing market such as sabotage, mismanagement, security issues and corruption.
According to African lender Ecobank the costs for the fuel subsidies for the third quarter will top 100 billion naira ($503 million).
