Petroleum product prices: Subsidy removal will trigger hike – Jonathan

The president also said though the palliative measures that would be put in place to cushion the effect of the removal of subsidy will commence immediately the plan takes effect, the impact of the succor will be gradual. Fielding questions from a panel of editors of some media houses across country, Jonathan said the subsidy […]

The president also said though the palliative measures that would be put in place to cushion the effect of the removal of subsidy will commence immediately the plan takes effect, the impact of the succor will be gradual. Fielding questions from a panel of editors of some media houses across country, Jonathan said the subsidy fund will be re-invested into the completion of on-going projects and those abandoned by successive administrations.

 

The total projected subsidy re-investible funds was put at N1.134 trillion based on average crude oil price of US$90 per barrel. Jonathan said part of the money will be shared between all the tiers of government and the Federal Capital Territory (FCT). Out of this, N478.49 billion is accrued to the Federal Government; N411.03 billion to state governments; N203.23 billion to local governments; N9.86 billion to the Federal Capital Territory (FCT) and N31.37 billion as transfers to derivation and ecology, development of natural resources and stabilisation.

Jonathan said while state and local governments were expected to design their own programmes by utilising their portions of the subsidy reinvestment funds, the Federal Government had decided to channel its own share of the resources into a combination of programmes to stimulate the economy.