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General News of Tuesday, 15 September 2020

Source: www.mynigeria.com

FG reveals real reason for fuel subsidy removal

Minister of Finance, Budget and National Planning, Zainab Ahmed Minister of Finance, Budget and National Planning, Zainab Ahmed

The Minister of Finance, Budget and National Planning, Zainab Ahmed has disclosed the reason President Buhari stopped the payment of the petrol subsidy.

According to Mrs. Ahmed, the decision to scrap the subsidy on fuel was based mainly on the country's depleted revenue stream which she said has gone below 65%.

Speaking on NTA’s ‘Good Morning Nigeria’ programme on Monday, September 15, 2020, Zainab said a return of the petrol subsidy would lead to fuel scarcity because the government would not have the capability to pay petroleum marketers.

“What we have been doing is not sustainable. If we bring back fuel subsidy, we will fail because we will not be able to pay it and the problem of disputes with marketers will come back, then we will have queues again. We just cannot afford it and therefore this deregulation must be made to work.

“We appeal to Nigerians to understand that in the past when subsidy was done, we could afford to do it but right now, we cannot pay. Remember that right now our revenue has gone down by about 65 per cent. So, it is not business as usual. We cannot do what we used to do anymore.”

She added that Nigeria is currently facing harsh times due to the Coronavirus pandemic like other countries worldwide and said the return of subsidy was non-negotiable.

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