The Information Minister, Lai Mohammed said it is wrong at this time for Nigeria to remove fuel subsidies under its regime.
Telescope.ng gathered in an interview with Reuters on Monday, July 4, Mohammed said many other nations were introducing measures to help citizens cope with high oil energy prices.
Nigeria, which at the moment imports its refined needs, scrapped plans to abolish fuel subsidies earlier this year – a move that raised concerns with the International Monetary Fund.
According to PM News, Lai Mohammed said “When you consider the chaos, the social disharmony and … instability such an action (of abolishing subsidies) would facilitate, is it worth it? I don’t think so.”
Nigeria suffers intermittent fuel shortages. It has raised its deficit forecast twice this year and increased borrowing to cover the cost of the subsidy.
The country’s petroleum production has also fallen short of government targets, with $1 billion in revenue lost to crude oil theft in the first quarter of this year, according to the sector regulator.
“A new industry law that allocates money to oil-producing communities would stop attacks and blamed the European Union’s climate change policies for stifling investment in the sector.” Mohammed said