• Wednesday, December 06, 2023
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Fuel crisis: Nigeria undergoing budget amendment over subsidy – Finance minister

Fuel subsidy: Finance minister Ahmed links economic hardship as reason for extension

The Nigerian government is currently undergoing a budget amendment process following the roll back on fuel subsidy, as the global fuel crisis intensifies, according to Zainab Ahmed, Minister of Finance, Budgets and National Planning.

She said this while responding to a question asked on rising share of interest payment as a share of total tax revenues, at a virtual meeting of the International Monetary Fund (IMF) with the theme: “The Political Economy of Fiscal Reforms in Africa”.

Read also: Nigeria’s petrol subsidy set to surpass N3.36tn oil revenue

“Also we are going through a budget amendment process because of the roll back on fuel subsidy but we are also keeping an eye on that particular number to make sure that it is within the sustainable level because the last thing we want is to have debt obligation problems,” she said adding that revenue to debt service ratio is currently at 55 percent.

The minister said the Federal Government has quietly implemented subsidies in the electricity sector, saying “as we speak, as it is, we do not have subsidies in the electricity sector.”

“We did that over time by carefully adjusting the prices at some levels while holding the lower levels down.