The Nigerian Presidency says the nation may have to continue to borrow due to the suspension of the removal of fuel subsidy.
The President’s Special Adviser on Media and Publicity, Femi Adesina, who stated this during a televised interview, said the subsidy removal would have helped in saving much in the nation’s economy, but its suspension, however, leaves Nigeria with a price to pay.
“Head or tail, Nigeria will have to pay a price,” he said. “It’s either we pay the price for the removal in consonance and in conjunction with the understanding of the people, but if that will not come, the other cost is that borrowings may continue, and things may be difficult fiscally with both the states and the Federal Government.
“You know how much could have been saved if the subsidy was removed and how it could have been diverted to other areas and spheres of national life. But if you do not go that way now – and I agree that it may not be auspicious to go that way, then we have to pay a price.”
Last year, the Senate approved some loan requests which included $6.1 billion, as well as the $16,230,077,718 and €1,020,000,000 in July and November respectively by the government.
Recall that an initial announcement to remove fuel subsidy in June was rejected by individuals and groups accusing the government of inflicting more suffering on Nigerians, but Minister of Finance, Budget, and National Planning, Zainab Ahmed, revealed on Monday, January 24th, that the decision will be suspended.
