There is no allocation for kerosene in the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) which President Muhammadu Buhari presented to the National Assembly, Tuesday, reports have said, suggesting that the president might have tacitly scrapped kerosene subsidy in the country.
The federal government subsidizes kerosene so that a litre sells at N50 but Nigerians hardly buy at the approved rate, with many retailers selling for as high as N130 per litre.
According to Vanguard, the document indicated that the present federal administration is to borrow the sum of N1.835.88 trillion to fund the 2016 budget which stands at N6.04 trillion just as it disclosed that so far, a total sum of N350.33 billion has been recovered from misappropriated funds.
A breakdown showed that while the sum of N1, 200.00 trillion would be borrowed domestically, foreign borrowing would N635.88 trillion.
The federal government is also proposing an oil benchmark price of $38 per barrel. However, it plans to continue paying subsidy on petrol next year despite calls for removal.
