The decision by the Federal Government to postpone the scrapping of subsidy on petrol is a good political decision. The Federal Government has decided to shift the decision on petrol subsidy for 18 months. This huge deficit must have tempted the government into thinking that the easy solution was the removal of subsidy on petrol. Recently, the NNPC presented a proposal of N3 trillion to the Federal Executive Council (FEC) as the bill to meet the funding provisions of the incremental petrol subsidy. As petrol subsidy is now to be retained the government has hinted that it will have to resort to more borrowing to keep the government running.

Source: The Guardian February 08, 2022 16:39 UTC