President Buhari to end fuel subsidy next year, PMS to sell for N97 per liter

Spread the love

When Ministers for Budget and National Planning, Udoma Udo Udoma; Finance, Mrs Kemi Adeosun and State for Petroleum Resource, Ibe Kachikwu; Governor, Central Bank of Nigeria, Godwin Emefiele and Executive Chairman, Federal Inland Revenue Service, FIRS, Babatunde Fowler, appeared before a National Assembly committee on Monday to defend the Medium Term Expenditure Framework (MTEF), they disclosed that the federal government would move the price of Premium Motor Spirit (PMS) from N87 to N97 per litre in 2016, while removing the subsidy paid on the product.

The Ministers lamented that an excess of N1 trillion has been paid for subsidy alone in 2015, adding that the outlay on the product is no longer sustainable given Nigeria’s current economic realities.

The Ministers also warned Nigerians to prepare for tougher times ahead as government reduces overhead spending, plugs loopholes and diversifies the economy away from oil which accounts for more than 90 per cent of the nation’s revenue.

Minister for budget and National Planning, Udo Udoma said “In preparing the MTEF, we seek a dramatic shift from spending on recurrent to spending on capital aspect of the budget. It is going to be tighter for everybody. All non essential expenditure would be cut out. We will reduce the overheads by seven per cent. We are beginning a journey of change and change has to start with the clarity of purpose of where we are going.”

Minister of State for Petroleum Resources, Dr Ibe Kachikwu, told the National Assembly Committee on Finance that it is imperative for the subsidy on PMS to end next year and for the country to increase its daily oil production targets; while monitoring pipelines to nip cases of vandalism in the bud.

Minister of Finance Kemi Adeosun added that her ministry has put together a strategy to reduce personnel cost.  “The era when an agency generates money and spends 99 per cent of it is over,” she said. “The country paid N1.8 trillion in 2015 as personnel cost but there is a strategy in place in the 2016 budget to reduce it by N100 billion. For instance, we are already working with banks so that we can go cashless, so that we could give debit cards to MDAs to procure items”.

The Buhari administration has been fiddling with whether to remove the subsidy on PMS or not since it assumed the reins.  But with crude oil prices hitting a seven-year low with global reference crude, West Texas Intermediate and Brent trading on Monday at $34.7 and $36.7 per barrel respectively, effectively disrupting Nigeria’s $38 per barrel benchmark for the 2016 budget, that decision has been taken off the administration’s hands.

Sponsored Ads

Sponsored Ads

Related Posts

INEC Declares Soludo Winner Of Anambra Governorship Election

Spread the love

Spread the love The Independent National Electoral Commission (INEC) has declared Chukwuma Soludo of the All Progressives Grand Alliance (APGA) the winner of the November 6 governorship…


Spread the love

Spread the love ________________________________ PUNCH______________________Sponsored Ads Afenifere knocks Buharis aide over comments on critics 36 states acting with impunity, cant escape $418m deductions Ned Nwoko Reps, Akpabio…


Spread the love

Spread the love ________________________________ PUNCH______________________Sponsored Ads Female Rep orders Omo-Agege aides arrest, alleges intimidation EFCC releases Obi Cubana after three-day grilling on money laundering, tax fraud Tukur…

TRAGEDY: Newly Employed Lady Dies In Collapsed Ikoyi Building A Month To Her Wedding

Spread the love

Spread the love A 26-year-old lady, Onyinye Enekwe, is among those who lost their lives, in the 21-storey building that collapsed on Monday, November 1, in Ikoyi…


Spread the love

Spread the love ________________________________ PUNCH______________________Sponsored Ads Lagos govt partners Navy to remove shanties in Amuwo-Odofin University of Aberdeen hands over another Benin Bronze to Nigeria Nasarawa govt…

Joe Biden Meets Pope Francis At The Vatican Ahead of COP26 (Pictures)

Spread the love

Spread the love U.S. President Joe Biden meets with Pope Francis in the Vatican on Friday, in what is branded as a personal and political audience, ahead…

Leave a Reply

Your email address will not be published.