No more fuel subsidy – Federal Government

According to a report by the Punch, the Minister of Finance, Budget and National Planning, Zainab Ahmed, and the Central Bank of Nigeria Governor, Godwin Emefiele, made the pledge in a letter to the Managing Director of the International Monetary Fund, Kristalina Georgieva that there is no fuel subsidy again.

The decline in crude oil prices due to  coronavirus pandemic saw the landing cost of petrol hitting a record low, which has affected funding of  subsidy on the product.

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NNPC has been the sole importer of petrol into the country for more than two years, after private oil marketers stopped importing the commodity due to crude price fluctuations, among other issues.

IMF, last Tuesday, had approved the country’s request for emergency financial assistance of $3.4bn, and published the Federal Government’s letter of intent in a detailed report released late on Wednesday.

In a letter dated 21st April 2020 the  federal government  told IMF that the recent introduction and implementation of an automatic fuel price formula will ensure fuel subsidies, which we have eliminated, do not reemerge.

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