Governor Charles Soludo of Anambra state has asked the federal government to embark on the immediate phasing out of petrol subsidy.

He warns that the rising petrol subsidy is gradually crippling the economy.

According to Soludo, if the federal government insists on retaining the subsidy, it should finance it with its allocation from the federation account and stop deducting it from the allocations of both state and local governments.

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Soludo spoke on the issue on Tuesday during the hybrid launch of the World Bank’s Nigeria development update in Abuja.

The governor expressed concern that federation account is no longer receiving oil export revenue, thereby creating financial crisis at the state and local government levels.

He warns that if the petrol subsidy continues, the Central Bank Of Nigeria (CBN) would continue to print money while budget deficit would continue to rise.

The governor also said that federal government has continued to pay its bills by resorting to  the ways and means, which according to him has been fueling inflation and depreciating the exchange rate of the naira.

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