2019 BUDGET: Finally, Buhari Confesses Nigeria Is Paying Fuel Subsidy
After the uproar that greeted the extra-budgetary spending on fuel importation by the Nigeria National Petroleum Corporation, NNPC in 2018, the government has decided to include it in the budget.
So, basically the government has gone from no-subsidy payment claims to partial payment to outright payment accommodated by the law.
This is despite promising to remove the subsidy and increasing the petroleum pump price from 87 naira to 145-naira per litre in 2016.
While presenting the 2019 budget to a joint session of the national assembly on Wednesday, President Muhammadu Buhari says the federal government has set aside 305 billion naira or $1 billion for fuel subsidy payments in the 2019 budget.Also Read: Lawmakers Boo, Cheer As Buhari Presents 2019 Budget
The president said the amount will be used to cater for NNPC “under-recoveries”.
He said: “We have allowed 305 billion-naira, equivalent to $1 billion for under-recoveries by NNPC on premium motor spirit in 2019,” Buhari said.
“We will continue working to bring it downwards, so that such resources are freed to meet the developmental needs of our people.
“Let me also use this opportunity to address and clarify the under-recoveries or subsidies on petrol in a period of economic challenges, our purchasing power is weak, we must reduce some of the burden on Nigerians.”
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