President Muhammadu Buhari has been advised by a transition committee to embark on cutting fuel subsidy and to privatize the four refineries in Nigeria. This is according to what a senior party in Buhari’s party told Reuters last Sunday.
As Africa’s biggest economy, most populous nation and the leading oil producer. Nigeria could do better had its oil industry rely heavily on subsidies, underperforming refining industry and importation of petroleum products. It has been revealed that the Nigerian government is paying a subsidy to the tune of over $6 billion in fraudulent claims that supposedly happened in 2012. The initiative is proving to be an expensive undertaking for the government.
President Buhari, with a little over three weeks in office officially, is said to be considering the recommendations suggested in the strategy report. Made by a 19 member committee constituted from the All Progressive Congress (APC) party.
On condition of anonymity, a senior APC source told Reuters: “The removal of the fuel subsidy is one of the recommendations of the transition committee. The committee also suggested to Mr. President that the four refineries be privatized so that …read more