The federal government says it will use $2.2 billion of the fund raised via eurobond to cater for petrol under-recovery costs. The government said it would also target more local borrowing in 2022 to fund subsidy payments.

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.

Zainab Ahmed, minister of finance, budget, national planning, disclosed this while speaking with Reuters on the sidelines of an Arab-African conference in Cairo. Ahmed said Nigeria would not tap the eurobond market this year.

“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. This has raised petroleum landing cost, thus widening market price and actual cost per litre.

For Nigeria, high oil prices mean high subsidy payments for the government to sell petrol below the international market rate.

The country depends almost entirely on imports to meet its domestic gasoline needs, even though it is a crude oil exporter. It is also facing shortages after recently importing off-spec petrol.

The government had planned to stop subsidy payments on petroleum products from July this year but reversed its decision in January, extending it by 18 months instead. It budgeted about N3 trillion for petrol subsidy in 2022.

https://www.thecable.ng/fg-to-use-eurobond-cash-borrow-more-to-fund-petrol-subsidy-says-zainab-ahmed/amp Lalasticlala

How many times will this lifeless regime pay fuel subsidy even after Buhari said he doesn't know what subsidy is?

Tell Buhari to reduce daily consumption back to 23 million litres a day

The government had.. budgeted about N3 trillion for petrol subsidy in 2022.

Fuel subsidy, subsidy under-recovery or whatsoever the Buhari’s govt chooses to call it remains a fraud. After all they all called it so when in the opposition.

They have removed the same subsidy three times yet still telling us of subsidising petrol. Who is fooling who? Why would the govt choose this unfeasible economic decision of borrowing to subsidise fuel?

Why not fix the refineries or privative the NNPC? Another political criminality about to be visited on this raped country by these super-looters in government.

Okay.

This guy is a prophet

This is the legacy a certain someone is coming to build on.

SarkinYarki:
Tell Buhari to reduce daily consumption back to 23 million litres a day

This is not when the NNPC or DPR does not have accurate details of daily fuel consumption in Nigeria. It was reported today that the cost accruing for about 107M barrel of crude oil were not accounted for in the NNPC balance shit of 2018. Just imagine.

okoo

Fahdiga:
How many times will this lifeless regime pay fuel subsidy even after Buhari said he doesn't know what subsidy is?

Go & ask your Mumu labor union, why they said they will shut down Nigeria if the Federal Government removes Petrol Subsidy?

Since to some Mumurist there is no subsidy on petrol.

Racoon:
This is not when the NNPC or DPR does not have accurate details of daily fuel consumption in Nigeria. It was reported today that the cost accruing for about 107M barrel of crude oil were not accounted for in the NNPC balance shit of 2018. Just imagine.

Many kids on these forum, their parents work @ NNPC, DPR, Ministry of Petroleum, but you will never hear them accuse their parents of stealing, because it is President Buhari that went from Aso Rock to the Ministry of Petroleum to divert the barrels of crude oil?

Systematic criminals, all of you are the same, no honor amongst thieves.

SarkinYarki:
Tell Buhari to reduce daily consumption back to 23 million litres a day

How, it seems while washing your head, that You must have forgotten the part your brain used for reasoning @ the River Bank where you went to take your bath?

buckeyemedia:
How, it seems that You must have forgotten the part your brain used for reasoning @ the River Bank where you went to take your bath?

Tell me how daily consumption moved from 23 million a day to almost 100million under your saint bUhari?

SarkinYarki:


Tell me how daily consumption moved from 23 million a day to almost 100million under your saint bUhari?

Only mumus believe 23 or 100 million consumption story, nonsense jobless economist.

Go & spend your time scheming on how you can make money, wailing Buhari no dey bring money unless you want to release a song?

That's how their destiny will be borrowed and exhausted. Buhari, Zainab Ahmed, Malami and other useless thieves, their destinies will be wasted like gas flaring.

buckeyemedia:
Go & ask your Mumu labor union, why they said they will shut down Nigeria if the Federal Government removes Petrol Subsidy?

Since to some Mumurist there is no subsidy on petrol.

Did your personal Lord and savior Buhari denied not knowing what subsidy is, Yes or no?

[s]

buckeyemedia:
Go & ask your Mumu labor union, why they said they will shut down Nigeria if the Federal Government removes Petrol Subsidy?

Since to some Mumurist there is no subsidy on petrol.

[/s]

[s]

buckeyemedia:
Many kids on these forum, their parents work @ NNPC, DPR, Ministry of Petroleum, but you will never hear them accuse their parents of stealing, because it is President Buhari that went from Aso Rock to the Ministry of Petroleum to divert the barrels of crude oil?

Systematic criminals, all of you are the same, no honor amongst thieves.

[/s]

[s]

buckeyemedia:
How, it seems while washing your head, that You must have forgotten the part your brain used for reasoning @ the River Bank where you went to take your bath?

[/s]

[s]

buckeyemedia:
Only mumus believe 23 or 100 million consumption story, nonsense jobless economist.

Go & spend your time scheming on how you can make money, wailing Buhari no dey bring money unless you want to release a song?

[/s]

buckeyemedia:
Many kids on these forum, their parents work @ NNPC, DPR, Ministry of Petroleum, but you will never hear them accuse their parents of stealing, because it is President Buhari that went from Aso Rock to the Ministry of Petroleum to divert the barrels of crude oil?

Systematic criminals, all of you are the same, no honor amongst thieves.

107m barrels unaccounted for since 2018 and you want your parents to answer the question instead of your slowpoke minister of petroleum. I guess age, like those you defend has finally caught up with your thinking faculty.

buckeyemedia:
Only mumus believe 23 or 100 million consumption story, nonsense jobless economist.

Go & spend your time scheming on how you can make money, wailing Buhari no dey bring money unless you want to release a song?

Just imagine your sheer arrogance and tomfoolery. Even those that voted and reinforced this failure called buhari would find your comments very offensive. Tueh!

The day it parks, we would all rest.

Unless d govt. do d needful which is to fix and make d refineries functional, d issue of fuel subsidy will keep arising.
An oil producing country like Nigeria should be exporting petroleum products.

Heheee... it is finished.