Left Menu
Development News Edition

Nigeria's Buhari calls electricity price rise, petrol deregulation crucial decisions

Nigeria's increase in electricity prices and the deregulation of petroleum sector were crucial decisions taken at the start of year, a statement by President Muhammadu Buhari said on Monday. Multilateral lenders have for years urged Nigeria to remove costly fuel subsidies, change electricity tariffs which have held prices artificially low and end the country's multiple exchange rate system.

Reuters | Abuja | Updated: 07-09-2020 20:51 IST | Created: 07-09-2020 20:33 IST
Nigeria's Buhari calls electricity price rise, petrol deregulation crucial decisions
Representative image Image Credit: ANI

Nigeria's increase in electricity prices and the deregulation of petroleum sector were crucial decisions taken at the start of year, a statement by President Muhammadu Buhari said on Monday.

Multilateral lenders have for years urged Nigeria to remove costly fuel subsidies, change electricity tariffs which have held prices artificially low and end the country's multiple exchange rate system. Last month sources said a much-needed $1.5 billion World Bank loan was held up due to concerns over such reforms. The government in March announced a new pricing mechanism that it said would maintain its control, but allow prices to move with the market and eliminate subsidies. Last week pump prices rose to a record level, days after electricity prices rose.

A statement issued by the presidency said the increase in electricity prices and deregulation of the petroleum sector were "crucial decisions that were taken at the beginning of the year". "There is no provision for fuel subsidy in the revised 2020 budget, simply because we are not able to afford it, if reasonable provisions must be made for health, education and other social services. We now simply have no choice," Buhari was quoted as saying in the statement.

Cheap fuel prices are seen by many in Nigeria as a benefit of living in an oil-rich country. An attempt by erstwhile President Goodluck Jonathan to eliminate subsidies was scuppered after riots ensued. Africa's largest oil producer had been spending 1 trillion naira ($2.63 billion) a year subsidising petrol prices but the global oil price crash made removing subsidies "inevitable", the oil minister said last week, adding that the country was no longer fixing fuel prices.


TRENDING

OPINION / BLOG / INTERVIEW

New farm bills in India: Focusing on farms or farmers?

... ...

Kenya’s COVID-19 response: Chaos amid lack of information

Confusing numbers and scanty information on how effective curfews and lockdowns have been in breaking transmission have amplified coordination and planning challenges in Kenyas response to COVID-19. Without accurate data, it is impossible t...

Farkhad Akhmedov: Calculating the price of impunity from the law

In insistences such as the battle over the Luna, Akhmedov has resorted to extreme legal machinations to subvert the High Courts decision and keep his assets from being seized. ...

Guinea’s elections hearken back to the autocracy and violence of its past

... ...

Videos

Latest News

From resuming ‘mulaqat’ to making diyas & sweets, Delhi jails inch closer to normalcy

From resuming mulaqat to manufacturing candles and diyas to preparing sweets, the Delhi Prisons is gradually moving towards normalcy amid coronavirus pandemic, jail officials said on Sunday. The officials maintain that all safeguards are be...

Adityanath takes out 'vijay julus' in his capacity as Mahant of Gorakhnath Math today

Uttar Pradesh Chief Minister Yogi Adityanath on Sunday took out a Vijay Julus on Vijayadashami, in his capacity as the Mahant of Gorakhnath Math. He said that coronavirus has affected all facets of life and it has impacted the festivals and...

Motorcycling-Morbidelli beats Suzuki duo to win Teruel Grand Prix

Petronas Yamahas Franco Morbidelli produced a masterclass to keep the Suzuki duo of Alex Rins and Joan Mir at bay and claim his second win of the season with victory at the Teruel Grand Prix on Sunday.Rins finished second behind the Italian...

Dengue is under control in Delhi: Kejriwal

Dengue is under control in Delhi like it was last year, Chief Minister Arvind Kejriwal said on Sunday. He was speaking on the 8th Sunday of 10 Hafte 10 Baje 10 Minute campaign against the vector-borne disease.Kejriwal changed water from pot...

Give Feedback