The Presidency revealed on Wednesday that Nigeria incur more debt by borrowing more money due to the suspension of the removal of fuel subsidy.
Femi Adesina, the President’s Special Adviser on Media and Publicity stated this during an interview on Channels Television’s breakfast programme, Sunrise Daily.
“Head or tail, Nigeria will have to pay a price,” he said. “It’s either we pay the price for the removal in consonance and in conjunction with the understanding of the people, but if that will not come, the other cost is that borrowings may continue, and things may be difficult fiscally with both the states 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 areas and spheres of national life. But if you do not go that way now – and I agree that it may not be auspicious to go that way, then we have to pay a price.”
The Senate approved late last year some loan requests by the government. This included the approval of $6.1 billion, as well as the $16,230,077,718 and €1,020,000,000 loan requests in July and November respectively.
According to Adesina, oil prices have been fluctuating globally for years as a result of one reason or the other, particularly due to COVID since 2019.
He stated that the price (oil) witnessed a decline as low as $30 per barrel, but later rose above $80 per barrel.
