The minister of finance Aisha Abubakar says the Federal government has no plans to remove fuel subsidy.
In a statement from the minister’s Media Adviser, Mr Paul Ella, she reiterated that there was no plan to remove fuel subsidy as being speculated adding that the current subsidy arrangement which was in the form of under recovery by the Nigerian National Petroleum Corporation was far better than what was obtainable when oil marketers were paid directly for fuel subsidy.
“NNPC is the sole importer of petroleum products, and so when they import it is the cost of business and they deduct that cost before they remit the little money to the federation account. So that is completely different.
“It is more cost effective, it is cheaper and what is being done now is easier to monitor what transpired.”
Speaking about Nigeria’s debt profile ,Aisha Abubakar says,
In the borrowing, we are still at 19 per cent to GDP; our borrowing is still low.
“What is allowed by our Fiscal Responsibility Act is the maximum of 25 per cent of our GDP compared to other countries like Ghana, Egypt, South Africa, Angola and Brazil and we are the lowest in terms of borrowing.”
In the area of revenue generation, she said that while the country had revenue challenges, efforts were currently being made to shore revenue.
“What we have is revenue problem and when revenues perform at the aggregate rate of 55 per cent, it hinders the ability to operate in our budget.
“So, it hinders our ability to service all categories of expenditures including salaries, allowances, capitals as well as debts.”