Nigeria: The End of Subsidy

The Federal Government last Tuesday signalled stoppage of petroleum subsidy in Nigeria, saying modalities to deregulate the sector is at its peak.

The government hinges the reason to deregulate the industry on the increasing funds the Petroleum Support Fund scheme is gulping from the Federal Government coffers.

For instance, between January and May this year, petroleum subsidy stood at N150 billion, fuelling deep concerns that before year end the country’s subsidy portfolio will be in the region of N1 trillion.

At its Tuesday meeting, state governors supported the Federal Government over the discontinuation of petroleum subsidy.

They also backed Government’s privatisation policy of the petroleum sector and the controversial Petroleum Industry Bill (PIB) currently in the National Assembly.

All Africa