TVCE (ABUJA) – About nine-hundred and eighty-five billion naira (N985 billion) will be saved if government is allowed to remove fuel subsidy, vice President Yemi Osinbajo has disclosed.
Osinbajo said the Federal Government, which relies on crude oil for about two-thirds of its revenue, is seeing a silver lining to the plunge in crude prices because it will no longer have to subsidise fuel.
“Lower oil prices also mean there is some advantage,” Osinbajo said in a panel discussion at the World Economic Forum in Davos, Switzerland, on Thursday.
The decline “means that we are not paying any subsidies, which frees up something in the order of about $5bn (about N985bn),” Bloomberg quoted the vice president as saying.
Nigeria, Africa’s largest oil producer, will still face challenges in financing its budget deficit and aims to increase Value Added Tax and customs duty collection to help plug the gap, Osinbajo said.
“We think with adequate governance around budget management and around expenditure management, we can do quite a bit. If we are able to do those things, we might be able to come away with under $30 a barrel oil,” he explained.
