FG Approves N407bln For Fuel Subsidy

The Federal government has approved the release of N407.07 billion as subsidy payment to oil marketers, the Minister of Finance Kemi Adeosun confirmed in a statement on Wednesday.

The payments include arrears from the 2014 financial year as well as payments for the current year.
It is expected that the recipients would ensure adequate supply of fuel to end the persistent fuel shortage in the nation.

The decision to provide the fuel subsidy comes after the World Bank reportedly advised the Buhari Administration to remove the subsidy entirely. The international financial institution argued that the fuel subsidy provides ''modest benefits'' to the citizenry, but the costs of the subsidy are ''quite high''.