Muhammadu Buhari, President of Nigeria
Nigeria‘s new president, Muhammadu Buhari, has been advised by his transition committee to end a fuel subsidy program and privatize Nigeria’s four refineries, senior sources in his party told Reuters on Sunday.
Africa’s top oil producer and biggest economy heavily subsidizes gasoline and relies on imports for the bulk of its domestic demand due to an underperforming refining system.
Buhari, who was sworn in as president three weeks ago, is considering the recommendations made in the strategy report produced by a 19-member committee formed from his All Progressives Congress (APC) party.
“The removal of the fuel subsidy is one of the recommendations of the transition committee,” said a senior APC source, who did not want to be named.
“The committee also suggested to Mr President that the four refineries be privatized so that the government stops wasting money on annual turnaround maintenance,” he said.
A second APC source also told Reuters that these recommendations were contained in the report given to Buhari earlier this month.
Buhari’s predecessor, Goodluck Jonathan, cut subsidies by 90 percent in the 2015 budget because government revenues have been hit by the slump in oil prices.
Nigeria attempted to end subsidies three years ago, doubling the price of a liter of petrol overnight, in efforts to cut government spending.
The move angered citizens who see cheap pump prices as a benefit they derive from living in an oil-rich country, and led to eight days of nationwide strikes. The government later reinstated part of the subsidy to end the strikes.
The prospect of the subsidy removal contributed to fuel shortages in the final days of Jonathan’s administration as gasoline importers went on strike saying they were owed money from the government.
Last week, the state-owned Nigerian National Petroleum Corporation (NNPC) said its four oil refineries would resume production in July.
Source: Business & Financial News, Breaking US & International News | Reuters.com
- Nigeria’s Buhari nominates Fashola, Amaechi as ministers
- Nigerian cabinet hints at austere rule
- Nigeria should curb president’s oil licensing powers, say lawmakers
- Buhari will release full audit on Nigerian National Petroleum Corporation (NNPC)
- Here are five key ministers in Nigerian President Buhari’s cabinet
- Fool Nigeria Once, Shame on You. Fool Nigeria Twice …
- Nigeria’s Goodluck Jonathan just did incoming Buhari a big favor with the fuel crisis
- Nigeria’s Buhari sends second batch of cabinet nominees to senate
- Nigeria’s Buhari should sell stakes in oil and gas joint ventures, says Seplat Chairman ABC Orjiako
- We will effectively deal with them in a few months: Muhammadu Buhari, Nigeria’s President-Elect, vows to stop Boko Haram (Video)
- Nigeria’s fuel subsidy unsustainable: Emmanuel Kachikwu, Managing Director, NNPC
- Nigeria’s ruling PDP faces state governors test after president ousted
- Billionaire Aliko Dangote’s smooth landing
- Nigeria aims to end refined petroleum imports within 18 months, says Kachikwu
- Nigeria’s president to split state oil company NNPC into two entities
- Central Bank of Nigeria sees pressure on Naira easing after vote
- Buhari pursues cabinet to boost Nigeria’s economy and battle Boko Haram
- Is Nigeria poised for a massive refining boom?
- Nigeria’s president fires the entire board of state-run oil company NNPC
- Overhaul of Nigeria’s government agencies aims to end excess
- Nigeria state oil group NNPC taps private sector for top ranks
- Will Muhammadu Buhari be Nigeria’s next president?
- Rehabilitated Buhari billed as answer to Nigeria’s problems
- Buhari vs. Jonathan – Beyond the Election: Chukwuma Charles Soludo, former Governor of the Central Bank of Nigeria (CBN)
- Nigeria’s Buhari submits cabinet nominees, announces he will serve as Petroleum minister
- Nigeria’s New Direction: Amy Jadesimi, MD, LADOL (Lagos Deep Offshore Logistics Base)
- How the Nigerian electoral race was won
- How Nigeria presidential challenger Muhammadu Buhari went from ‘ruthless ex-dictator’ to ‘weak leader’
- Nigeria’s cabinet: Seven people to watch in Buhari’s team
- Nigeria’s finance minister makes non-oil revenues top priority
- Is this leading lady Nigeria’s next president?
- Nigeria’s APC wins landslide over PDP in state polls (Infographic)
- Nigeria appoints former ExxonMobil Vice Chairman Emmanuel Ibe Kachikwu as Group Managing Director of state oil firm NNPC
- Nigeria proposes broad oil sector overhaul and potential NNPC stock exchange listing
- Nigeria’s new oil chief Emmanuel Ibe Kachikwu announces restructuring & audit
- 5 Things to Know About Muhammadu Buhari
- Nigerian Opposition Leader Buhari Arrives in London on ‘Charm Offensive’
- Nigeria’s former president, Olusegun Obasanjo, quits ruling party in blow to current president, Goodluck Jonathan
- Nigeria’s incoming ruling party APC makes gains in state governorship elections
- Full transcript: FT interview with Nigeria’s central bank governor Godwin Emefiele