Nigeria’s Minister of Finance, Zainab Ahmed has revealed that the federal government will borrow more funds to finance petrol subsidy.
Ahmed revealed this while speaking with Reuters on the sidelines of an Arab-African conference in Cairo.
The Minister said the federal government will use $2.2 billion of the fund raised via eurobond to cater for petrol under-recovery costs, adding that the FG would target more local borrowing in 2022 to fund subsidy payments.
“Rising oil prices have put us in a very precarious position … because we import refined products … and it means that our subsidy cost is increasing”
Further, Ahmed said the federal government is working with lawmakers to boost revenues. She added that the rise in oil prices means that borrowings will increase more than planned.
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