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Subsidy removal: No additional loan outside World Bank’s $800m facility – FG

Subsidy removal: No additional loan outside World Bank’s $800m facility – FG

The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, has debunked media reports suggesting that the Federal Government is seeking new loans to cushion the effect of the pending fuel subsidy removal.

Ahmed, in a statement, described the reports as tissues of lies, explaining that the only existing facility meant to ameliorate the subsidy removal crunch was the $800 million from the World Bank, which is currently awaiting parliamentary approval before the Federal Government commences disbursement.

She said: “The government is, therefore, not seeking another loan for the pending fuel subsidy removal. It is one and the same.

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“It will be recalled that the facility would be deployed to provide succour to 10 million households, who are expected to get N5,000 each for a period of six months,” she said.

Ahmed had explained that the initial duration of the palliatives meant to cushion the effects of the planned petrol subsidy removal on vulnerable Nigerians was for six months, but would be reviewed upon extensive consultation with the stakeholders.

“The $800 million has been negotiated and approved by the Federal Executive Council (FEC) and we now have a request before the parliament for approval.

And once the parliament approves it, the next administration can decide on the utilization.

Subsidy removal: No additional loan outside World Bank’s $800m facility – FG

SUN

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