How Increase In Petrol Price Will Benefit Nigerians — Lai Mohammed

by on September 27, 2020

The recent hike of fuel price will benefit Nigerians, the Muhammadu Buhari-led Federal Government has explained.

The increase has led to various reactions, including planned nationwide strike by the labour union.

Some Nigerians accused the government of being insensitive to the plight of its citizens, especially during a pandemic.

But, Lai Mohammed, Minister of Information, while addressing newsmen in Lagos, yesterday said unlike popular opinions, the government is not insensitive to Nigerians.

He said that the full deregulation of the petroleum sector and the service-based electricity tariff adjustment will in the long run benefit the ordinary people.

Mohammed added that aside from the benefits, the government can no longer afford the cost of subsidy due to the economic conditions.

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“Apart from that, the truth is that the government can no longer afford the cost of subsidy, especially under the prevailing economic conditions.

“Revenues and foreign exchange earnings by the government have fallen by almost 60%, due to the downturn in the fortunes of the oil sector. And there is no provision for subsidy in the revised 2020 budget.

“So where will the subsidy money come from? Remember that despite the massive fall in revenues, the government still has to sustain expenditures, especially on salaries and capital projects,” he said.

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