In a press statement on Wednesday, the Minister of Finance Mrs. Kemi
Adeosun announced the Federal Government’s approval of a N407.07 billion
fuel subsidy to oil marketers.
The massive subsidy includes a payment for arrears accrued during the
2014 fiscal year, as well as
payments for 2015. In her statement
Minister Adeosun explained that the approval was granted after President
Muhammadu Buhari issued a directive that the oil marketers be paid
immediately in order to end the fuel scarcity within the country.
The fuel scarcity crisis began roughly one month ago and has
inflicted severe hardships upon the Nigerian people. The decision to
provide the fuel subsidy comes after the World Bank reportedly advised
the Buhari Administration to remove the subsidy entirely. The
international financial institution argued that the fuel subsidy
provides “modest benefits” to the citizenry, but the costs of the
subsidy are “quite high”.
This subsidy comes after increasing criticism of President Buhari's
leadership in Nigeria as many Nigerians face hardship because of the
high cost of fuel. President Buhari has sent clear signals to the
Nigerian public that he would take a personal interest in reforming the
oil and petroleum sector in Nigeria.
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