Buhari’s Top Ally Announces The Immediate Increase Of Petrol Pump Price, As The NEXT LEVEL Begins

By Post-Nigeria: May 15, 2019 11:36

Buhari’s Top Ally Announces The Immediate Increase Of Petrol Pump Price, As The NEXT LEVEL Begins

Bismarck Rewane, the Chief Executive Officer of Financial Derivatives Company Limited, and a strong Ally of President Muhammadu Buhari, has asked Nigerians to brace up for an increase in the pump price of petrol.

Recall, that In 2016, the Buhari administration increased a litre of petrol from N87 to N145, sparking criticism among citizens.

Making a presentation at the Lagos Business School, Rewane said that there are indications that the price of fuel will rise, because the government is working towards reducing subsidy payments.

He described subsidies as a huge drain on government’s revenue, adding that, the World Bank put Nigeria’s total subsidy bill in 2018, at N731 billion.

“A gradual reduction in subsidy payments is anticipated. Only N305 billion set aside for under-recovery in the 2019 budget; expect an increase in the pump price of fuel”, he said.

“Forty percent shortfall in provision for subsidies (under-recoveries) points, to possible price increases.”

Rewane added that hike in the price of petrol, would result in high inflationary pressure.

He described the 2019 budget as counter-cyclical, saying that, the economy is in dire need of a boost.

He stressed that with expenditures much higher than sustainable revenues, the fiscal deficit had widened by 2.15 percent to N1.9 trillion , adding that, the supplementary budget could not be avoided.

“Oil revenues are projected to decline, due to the impact of OPEC quota on Nigeria’s oil output level”, he added.

On the new minimum wage, he said that Internally Generated Revenue, IGR, remains the key to funding it, adding that, it is not sustainable to rely on the Federal Accounts Allocation Committee, FAAC.

Rewane maintained that the capacity of the Economic Management Team, will determine the success of President Muhammadu Buhari, in the second term.

He projected that Buhari would have unveiled his cabinet by June, saying: “The post cabinet selection squabbling, will lead to splintering of the All Progressives Congress.”

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