Nigeria may have to continue to borrow due to the suspension of the removal of fuel subsidy, the Presidency said on Wednesday, IgbereTV reports.
The President’s Special Adviser on Media and Publicity, Femi Adesina, stated this during an interview on a breakfast programme
“Head or tail, Nigeria will have to pay a price,” he said. “It’s either we pay the price for the removal in consonance and in conjunction with the understanding of the people, but if that will not come, the other cost is that borrowings may continue, and things may be difficult fiscally with both the states and the Federal Government.
“You know how much could have been saved if the subsidy was removed and how it could have been diverted to other areas and spheres of national life. But if you do not go that way now – and I agree that it may not be auspicious to go that way, then we have to pay a price.”
Last year, the Senate approved some loan requests by the government. This included the approval of $6.1 billion, as well as the $16,230,077,718 and €1,020,000,000 loan requests in July and November respectively.
According to Adesina, oil prices have been fluctuating globally for years as a result of one reason or the other, particularly due to COVID since 2019.
He stated that the price witnessed a decline as low as $30 per barrel, but later rose above $80 per barrel.
