Fuel to sell at N97 per litre as FG Plans to Remove Subsidy in 2016

ABUJA – As a result of the economic policies being formulated by the President Buhari led government, Nigerians have been urged to prepare ahead for more austere conditions in 2016, as the Federal Government looks to strictly monitor all Ministries, Agencies and MDAs to avoid wastes.

The Federal government has also planned to reduce the Personnel cost form N1.8 trillion to N100 billion as part of moves to reduce expenditure and save cost in the 2016 budget.

According to the government, an excess of N1 trillion was spend on fuel subsidy in the year 2015 which include the Nigeria National Petroleum Corporation, NNPC, just as it disclosed that attention would be given to Internally Generated Revenue, IGR to fund the N6 trillion 2016 budget, adding that in 2016, it would remove fuel subsidy, move the price of petrol per liter from N87 to N97.

These were disclosed Monday when the Ministers for Budget and National Planning, Udoma Udo Udoma; Finance, Mrs Kemi Adeosun and State for Petroleum Resource; Emmanuel Ibe Kachikwu; Governor, Central Bank of Nigeria, Godwin Emefiele; Executive Chairman, Federal Inland Revenue Service, FIRS, Babatunde Fowler appeared before the joint committee s of the National Assembly on Finance to defend the 2016, 2017 and 2018 Medium Term Expenditure Framework and Fiscal Strategy Paper, MTEF & FSP documents presented to the National Assembly by President Muhammadu Buhari.

Speaking earlier, Minister for Budget and National Planning, Udoma Udo Udoma who noted that it was important that substantial reductions were made on the spending pattern if the expected change must come in, said, ” In preparing the MTEF, we seek a dramatic shift from spending on recurrent to spending on capital aspect of the budget. It is going to be tighter for everybody. All non essential expenditure would be cut out.‎ We will reduce the overheads by 7 per cent. We are beginning a journey of change and Change has to start with the clarity of purpose of where we are going‎."