Nigerian Government Will Borrow More To Fund Petrol Subsidy — Finance Minister

The Minister of Finance, Budget and National Planning, Zainab Ahmed, says the Federal Government is targeting local borrowing in 2022 to fund subsidy payments.

Ahmed, in an interview with Reuters, said the government would use $2.2 billion (N916 billion) of the fund raised via Eurobond to cater to petrol under-recovery costs.

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In September 2021, Nigeria raised $4 billion (N1.6 trillion) through Eurobond issuance.

Ahmed however said Nigeria would not tap the Eurobond market this year.

“Rising oil prices have put us in a very precarious position … because we import refined products … and it means that our subsidy cost is increasing,” she said.

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