President Muhammadu Buhari has informed federal lawmakers that fuel subsidy in the 2019 budget will gulp $1 billion.
Speaking during the presentation of the 2019 Budget, Buhari explained that subsidies today are much more different from what they used to be in the past, stating that the Nigerian National Petroleum Corporation is the sole importer of oil today.
According to him: “We have allowed N305 billion, equivalent to $1 billion, for under-recoveries by NNPC on premium motor spirit in 2019.
“The problem in subsidies in the past was abuse and corruption. Today, the government through the NNPC is the sole importer of premium motor spirit.
“Therefore the under-recovery is fro the NNPC trading account. This means the possibilities of some marketer falsifying claims are removed.
“We will continue working to bring it downwards, so that such resources are freed to meet the developmental needs of our people.”