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The Nigerian President, Muhamamdu Buhari in a series of fresh revealations has finally explained why his administration decided to keep paying fuel subsidies despite pressures mounted on him to remove it.
In an interview which he had granted to Bloomberg, President Muhammadu Buhari had stated that the effects of removing fuel subsidies would have been too harsh on Nigerians and they would not have been able to sustain it too.
The President also said they were working on boosting local capacity in order to stem the inflationary pressures.
Buhari claimed that most western countries are implementing fuel subsidies and added that “what is good for the goose is good for the gander”.
According to him, “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 also explained that the exchange rate 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.”
There is currently fuel scarcity in Lagos and other parts of the country.
In another report, the Nigerian President, Muhammadu Buhari has made a revelation of a series of initiatives by his administration which would be used to address the challenges of electricity supply across the country while working on the incessant blackouts the country has been facing in recent weeks.
President Buhari who had spoken in an interview he granted Bloomberg News had reiterated that one of the initiatives would be the ongoing decentralisation of the nation’s national grid through renewable mini-grids and other forms of alternatives to help this cause.