Last updated on December 4th, 2019 at 05:40 am
Nigeria debt as a April,2019 stands at about N24.3tn which is about 19 per cent to the Gross Domestic Product, but still low compared to Ghana, Brazil, South Africa, Egypt and Angola, revealed by Minister of Finance, Mrs Zainab Ahmed
Zainab said that the current subsidy arrangement which was in the form of under recovery by the Nigerian National Petroleum Corporation, NNPC was far better than what was obtainable when oil marketers were paid directly for fuel subsidy.
“We are not there yet and we discuss this periodically under the Economic Management Team. But we have not found a formula that works for Nigeria and you know Nigeria is unique because what works in Ghana may not work in here.
“So, it is still work in progress and so there is no intention to remove fuel subsidy at this time.”
She added that NNPC is the sole importer of petroleum products, and so when they import it is the cost of business and they deduct that cost before they remit the little money to the federation account.
Presently,In the area of revenue generation, Nigeria had revenue challenges when revenues perform at the aggregate rate of 55 per cent, it hinders the ability to operate on budget. this further hinders the country ability to service all categories of expenditures including salaries, allowances, capitals as well as debts.”