The federal government of Nigeria says it will spend the $2.2 billion it raised from Eurobond to pay for petrol subsidy. It will also borrow locally this year to foot the petrol subsidy.
Finance minister, Zainab Ahmed said in an interview with Reuters on the sidelines of an Arab-African conference in Cairo, that the country will spend the money saved from Eurobond on petrol subsidy.
She explained that the rising price of oil in the world market has put Nigeria in a worrisome position as it is equally raising the cost of imported petrol and subsidy paid on it.
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Meanwhile, chairman of the society of petroleum engineers (SPE), professor Olalekan Olafuyi had predicted that Nigeria’s petrol subsidy may hit 6 trillion naira if the price of oil continues to surge in the world market.
Olafuyi, who is a consultant at the University of Benin spoke on the issue in an interview on the sidelines of the maiden SPE women leadership lecture series to mark the 2022 international women’s day.
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