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FG To Borrow More To Fund Petrol Subsidy- Finance Minister -

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FG To Borrow More To Fund Petrol Subsidy- Finance Minister

 

 

FG To Borrow More To Fund Petrol Subsidy- Finance Minister

 

The minister of Finance, Budget and National planning, Zainab Ahmed has given reasons why the federal government will borrow More money to fund subsidy payments in 2022.

In an interview with Reuters, Ahmed disclosed that $2.3B of fund raised via Eurobond will be used to fund petrol under-recovery costs.

It would be recalled that in September 2021, Nigeria raised $4 billion (N1.6 trillion) through Eurobond issuance.

Ahmed however said Nigeria would not tap the Eurobond market this year.

She said:

“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,” 

According to Ahmed, FG is working hand in hand with the lawmakers to boost revenues and the rise in oil prices will make borrowing increase.

Russia’s invasion of Ukraine sent oil prices higher and injected even more uncertainty into an already off-balance worldwide economy.

Bim theconscienceng

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