As the dust raised over the scarcity of Premium Motor Spirit, popularly called petrol at filling stations nationwide gradually begins to settle, the Minister of Finance, ZAINAB AHMED, has said the federal government would target more local borrowing in 2022 to fund subsidy payments on petrol.
The Finance minister also said government will use $2.2 billion of the fund raised via eurobond to cater for petrol under-recovery costs.
Disclosing this while speaking on the sidelines of an Arab-African conference in Cairo, ZAINAB AHMED said that the government was working with lawmakers to boost revenues and that the rise in oil prices means that borrowings will increase more than planned.
The government had planned to stop subsidy payments on petroleum products from July this year but reversed its decision in January, extending it by 18 months instead.
It subsequently budgeted about N3 trillion for petrol subsidy in 2022.
MORE STORIES
