A report seen in Reuters revealed that Nigeria could be looking at a 50% increase in the money it would spend to keep petrol prices fixed. This is according to a draft document which also stated that Nigeria will borrow an additional 6.6 trillion naira to compensate for shortfalls in its budget.
The document drafted by the country’s minister of finance alongside private sector executives and some economists, titled “Accelerated Stabilisation and Advancement Plan” (ASAP), is intended to proffer solutions to some of the complexities accompanying reforms for growth.
“At current rates, expenditure on fuel subsidy is projected to reach 5.4 trillion naira by the end of 2024. This compares unfavorably with 3.6 trillion Naira in 2023 and 2.0 trillion Naira in 2022,” the ministry said in the draft document.
According to presidential aide; Bayo Onanuga, the president was handed a copy of the draft which contains suggestions on how to improve the current economic condition of the country.
The ministry via the strategy document suggested that the government sell equity in its refineries by May 2026 to increase revenue. It also suggests boosting the excise tax on drinks and imposing a charge on single-use plastics and sweetened beverages.
Nigeria under its new administration led by President Bola Tinubu has had to deal with inflationary pressures due to the reforms introduced by the president.
As soon as his inauguration day, the president of Nigeria announced that the fuel subsidies which were considered expensive were “removed.” This more than tripled fuel costs, creating a ripple effect that heavily affected the country’s entire economy.
