The Minister for Finance, Budget and National Planning, Zainab Ahmed, announced the subsidy amount in Abuja at the public presentation of the 2020 budget details.
The federal government has said it will spend about four hundred and fifty billion naira (N450,000,000,000) next year on fuel subsidy. This is despite the commitment by the Nigerian National Petroleum Corporation (NNPC) to rehabilitate the country’s four refineries to stop importation of petroleum products.
Mrs. Zainab said that a provision of N450 billion has been made for ‘under-recovery’ of cost in respect of the importation of Premium Motor Spirit (PMS), popularly called petrol.
Former NNPC chief and ex-petroleum minister, Ibe Kachikwu, also pledged that Nigeria would end petrol importation by 2019. Mr Ibe was one of the ministers not reappointed by President Muhammadu Buhari when he named his new cabinet after his reelection.