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”.

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