New Telegraph

FG targets N1trn savings from subsidy removal

The Federal Government is expecting to save as much as N1 trillion ($2.6 billion) a year after it abolished subsidies paid to guarantee cheap gasoline in Africa’s top oil-producing country.

 

 

“Already, we have taken off the budgetary provision for subsidy which is about N500 billion,” Petroleum Minister of State Timipre Sylva told reporters Thursday in Abuja, the capital.

 

“It will save us up to a trillion naira and more every year.” Nigeria relies on oil exports for more than 90 per cent of foreign earnings and 50 per cent of of government revenue.

 

As oil prices fell to a record with the coronavirus pandemic, the authorities used the opportunity to end the subsidies that have been in place since the 1980s.

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