The Nigerian government is expected to allocate 5.4 trillion naira in 2024 to maintain fixed petrol prices, a significant 50% increase from 2023, according to a preliminary document seen by Reuters.
President Tinubu could potentially implement these reforms through executive orders, focusing on supporting businesses in key sectors such as power, oil and gas, agriculture, and healthcare.
The draft policy also proposes measures like selling equity in state refineries, increasing excise duty on beverages, and introducing taxes on single-use plastics and sweetened beverages to boost revenue.
Additionally, the government aims to increase oil production to 2 million barrels per day by the end of the year to improve cash flow and address revenue shortfalls, as Nigeria’s economy has seen slower growth than its targeted annual rate of 6%.
The country is also considering borrowing 6.6 trillion naira to manage budget shortfalls. Despite two recent currency devaluations, petrol prices have remained fixed in Nigeria due to the country’s heavy reliance on petroleum imports, caused by insufficient production from state-owned refineries.
The finance ministry projects that expenditure on fuel subsidies will reach 5.4 trillion naira by the end of 2024, compared to 3.6 trillion naira in 2023 and 2.0 trillion naira in 2022.
A draft document containing recommendations for improving the economy was received by Tinubu, according to Presidential aide Bayo Onanuga. If approved, these measures could significantly impact Nigeria’s economic landscape.
