FG – We Might have No Other Option than to Continue Borrowing

The federal government on Wednesday 26^th January 2022 has disclosed that the Nigerian government may have no other feasible option than to continue borrowing to balance fiscal costs, as Nigeria will have to pay a price to continue subsidizing Premium Motor Spirit (petrol).

Femi Adesina, President’s Special Adviser on Media and Publicity revealed this during an interview with Channels Television.

Adesina stated that the decision taken by the FG to expand fuel subsidy removal by 1 year and 6 months  is not political, it was taken out of the need to protect the economy.

Recall, the Nigerian National Petroleum Company Limited (NNPC), stated price of petrol should be sold at N260 per litre. However, the price has been subsidized to N162 per litre

Words from Femi Adesina During the Interview: “It is a valid thing (to do),” , but is this done because of elections next year? No.”

“It is done because as the minister (of finance) stated, the timing is not auspicious, inflation is still high. In the past eight months, we saw inflation reducing but the last month, it went up again; further consultations need to happen with all the stakeholders… the timing is not right, it will exacerbate the hardship of the people and the President genuinely cares,” Adesina added.

“Politics is a part of our lives, but elections will just be one event in the life of the country. When elections come, they go, the country continues. This fuel subsidy, whether it stays or goes, is going to have a serious impact on the economy.”

“Head or tail, Nigeria will have to pay a price; it is either we pay the price for the removal in consonance and in conjunction with the understanding of the people. The other cost is that borrowings may continue and things may be difficult fiscally for both the state 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 spheres of our lives…we have to pay a price.”