September 1, (THEWILL) – The Federal Government has disbursed N2 billion each to the 36 States of the Federation and the Federal Capital Territory (FCT) as part of the N5 billion palliative package recently announced to cushion the effects of subsidy removal on Petrol.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who disclosed this at a press conference in Abuja, on Friday, said the Federal Government had to hold back on the balance of N3 billion to avoid a spike in inflation figures if the funds were released at once.
Edun, however, clarified that the fund was not part of the proposed $800 million World Bank loan to cushion the effect of the subsidy removal.
Outlining some of his headline policy plans for the nation’s economy, Edun anchored the economic plan of the administration on increasing revenue, effective debt management, and automation of revenue collection to plug leakages and create an enabling environment for private sector players to invest and flourish.
He said the Government will mobilise revenue from improved oil production to earn more forex and create an enabling environment for local and foreign investors.
Meanwhile, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, who was also at the press conference, said the oil company would have gone bankrupt if gasoline subsidy had not been removed by President Tinubu on resumption of office.
Kyari also said the Government will start making more money soon following improved crude oil production and the removal of subsidy on petrol.
He added that Nigeria’s crude oil production has increased to about 1.7 million barrels as of Wednesday, August 30.
