The issue of fuel subsidy removal has continued to be relevant to the nation’s citizens as the government’s decision will affect the country’s economy. Speaking on the issues, the Managing Director and Chief Executive Officer, Financial Derivatives Company Limited, Mr. Bismarck Rewane, shared the opinion that fuel subsidies are a huge drain on the government’s revenue.
He said, “A gradual reduction in subsidy payments [is] anticipated. Only N305bn set aside for under-recovery in 2019 budget; expect an increase in the pump price of fuel.
“40 percent shortfall in provision for subsidies (under-recoveries) points to possible price increases.”
The financial expert, however, said a petrol price hike would result in high inflationary pressure.
“Oil revenues are projected to decline due to the impact of OPEC quota on Nigeria’s oil output level,” he added.
The expert shared this in his presentation at the Lagos Business School Breakfast Session on May 8 as obtained by a Punch correspondent.