Friday, October 17, 2014

FG To Spend N1 Trillion On Petrol Subsidy In 2015

The Federal Government is to spend the sum of
N971 billion to subsidise the supply of petrol to
Nigerians in 2015, an indication that the
administration has no plan to do away with
subsidising petrol.


In the same vein, the government plans to give out
a total of N260 million to the Subsidy Reinvestment
Programme, SURE-P, for intervention in various
development agencies.

This is contained in the 2015-2017 Medium Term
Expenditure Framework and Fiscal Strategy paper,
which President Goodluck Jonathan sent to the
National Assembly for approval as the basis for the
2015 budget.

According to the document, which Vanguard
obtained Thursdayt, the government expects to
receive fabulous revenue of N7.164 from oil and
gas while the sum of N3.2 billion from non-oil
revenue sources within the year.
Overall, the administration is expecting N11.1
billion as total federally collectible revenue for
2015, as against the projection of N10.894 for the
current year.
Of its oil revenue, according to Jonathan, the sum
of N858.59 billion will be spent as its contribution
to the cost of oil production while N209 billion will
go to National Domestic gas development and N78
billion set aside for Gas infrastructure development.
In the letter he addressed to the leadership of the
National Assembly, Jonathan admitted that the oil
sector was not witnessing new investments due to
uncertainty occasioned on the non-passage of the
Petroleum Industry Bill, PIB.

Jonathan explained that the oil benchmark of $78
pb was predicated on the projected balance
between increasing global supply resulting from
rising oil and unconventional oil production, and
production disruptions that may might result from
geopolitical risks.

The President said: “Our proposal is also driven by
the need to be cautious in our revenue projections
given the volatile nature of oil prices and the need
to rebuild our fiscal buffers, which have been very
useful in periods of revenue shocks”.

 www.vanguardngr.com/2014/10/fg-spend-n1-trillion-petrol-subsidy-2015/

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