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By Nasir Kura
President Muhammadu Buhari said on Wednesday that federal government has earmarked N305 billion for fuel subsidy in the 2019 budget proposal.
The President said this while presenting the N8.83 2019 budget estimates at a joint session of the National Assembly in Abuja.
“We have allowed N305 billion equivalent to one billion U.S. dollars for under-recovery by the NNPC on Premium Motor Spirit in 2019.
“Let me take this opportunity to address and clarify the under-recoveries on petrol. In a period of economic challenges where purchasing power is weak, we must reduce some of the burden on Nigerians,” he said
According to him, the problem of subsidy in the past was abuse and corruption, especially by independent oil marketers.
“Today, the government-owned NNPC is the sole importer of PMS, and therefore the under-recovery is from the NNPC trading account. This means the possibility of some oil marketers filing bogus claims is removed. We will continue working to bring it (subsidy) downward to ensure such revenue sources are freed up to meet the developmental needs of our people,” he said.
