President Goodluck Jonathan has proposed to cut fuel subsidies in half in a bid to reduce spending after a retreat in global crude prices.
According to David Mark, the Senate President, the government plans to reduce fuel subsidies next year to N458.6 billion ($2.6 billion) from N971.1 billion , citing a revised 2015 Medium Term Expenditure Framework and Fiscal Strategy Paper submitted by President Jonathan.
The global collapse in oil prices is biting into Nigeria’s income, 70 percent of which comes from crude exports. Finance Minister Ngozi Okonjo-Iweala plans to cut expenditure by 6 percent next year and lower the budgeted benchmark oil price to $73 per barrel, from $77.5 this year.
Kerosene subsidies will also be cut to N156 billion, from N250 billion, according to the proposal.
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