Business

Nigeria may face $15.1bn forex gap as fuel subsidy removal looms


Nigeria may see a foreign exchange gap of $15.1 billion as the government prepares to remove subsidy on the premium motor spirit (PMS) in two months.

Currently, the Nigerian National Petroleum Company Limited (NNPCL) is the sole importer, spending around $15.1 billion yearly to import PMS alone.

Last year, the Central Bank of Nigeria (CBN) only provided about $1.3 billion for fuel import, mostly into diesel and kerosene.

Marketers have expressed concerns about the lack of clarity on how the government will manage the deregulated market and FX crisis.
If marketers sell below a certain threshold, there could be market disincentive.

Henry Adigun, an energy expert, warns of economic catastrophe and challenges if the new government adheres to removing subsidy on petrol as planned by the ongoing administration without setting up a transition process.
1 year ago
Adeyinka Arutu

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