President Muhammadu Buhari has revealed the reason his administration has decided to keep paying fuel subsidies.
Buhari, in an interview with Bloomberg, revealed that removing fuel subsidies would have been a harsh economic policy for Nigerians.
The President also promised to boost local capacity so as to stem the inflationary pressures.
The Nigerian leader said most western nations are implementing fuel subsidies and added that “what is good for the goose is good for the gander”.
He said, “My government set in motion plans to remove the subsidy late last year. After further consultation with stakeholders, and as events unfolded this year, such a move became increasingly untenable.
“Boosting internal production for refined products shall also help. Capacity is due to step up markedly later this year and next, as private players and modular refineries come on board.”
Buhari while speaking on the exchange rate, said the rate of exchange is very much “susceptible to external shocks that can suddenly and severely affect Nigerians”, but added that “as we step up domestic production – both in fuel and food – the inflationary threat shall diminish, and we can move toward unification.”
It was gathered that there is scarcity of fuel in Lagos and other parts of the country.
As high as N300/litre are spent by consumers to purchase the product in the black market.