Bismarck Rewane, chief executive officer of Financial Derivatives Company Limited, has told Nigerians to prepare for an imminent increase in the pump price of petrol.
Rewane, who gave the warning during a presentation at the Lagos Business School, disclosed the rise in the pump price of petrol is to be expected as the federal government is working on reduction/removal of subsidy payments.
He added that subsidy payment has caused a huge drain on the government’s revenue, citing that the World Bank put Nigeria’s total subsidy bill in 2018 at N731 billion.
Africa News24(AN24) recalls the Buhari administration in 2016, increased the price for a litre of petrol from N87 to N145.
“A gradual reduction in subsidy payments is anticipated. Only N305bn set aside for under-recovery in 2019 budget; expect an increase in the pump price of fuel,” Rewane said.
“Forty per cent shortfall in provision for subsidies (under-recoveries) points to possible price increases.”