Nigeria’s Fuel Subsidy to Gulp N450bn in 2020

Nigeria’s fuel subsidy payments will gulp N450 billion in 2020, Minister for Finance, Budget and National Planning, Zainab Ahmed, has said.

At the public presentation of the 2020 budget proposals in Abuja on Monday, October 14^th, Ahmed noted that the 450 billion will come under the 2020 budget and will primarily cover premium Motoring Spirit (PMS).

“we have a provision for under-recovery of PMS in the sum of N450 billion. If you look at the Budget office website, it is in the fiscal framework, which is an annexure to the budget.” 

The Finance Minister though explained however that the reforms in the oil sector will involve the private sector.

“Some reforms will be tough but they must be done to look at the facts and be frank to ourselves. However, we will engage the public sector in whatever we do, including any changes in taxes with regards to rates or administration methods.”

President Buhari’s budget proposal presentation of N10.33 trillion to a joint session of the National Assembly on Tuesday, put the government’s estimated revenue in 2020 at N8.155 trillion, comprising oil revenue of N2.64 trillion, non-oil tax revenues of N1.81 trillion and other revenue of N3.7 trillion.

No plans to remove fuel subsidy, FG tells IMF