Why we retained fuel subsidy – Osinbajo

Vice-President Yemi Osinbajo, says the reason why the Buhari-led administration did not remove fuel subsidy because of the negative effects it would had on Nigerians.

Speaking on Friday during the vice-presidential debate organised by the Nigerian Elections Debate Group (NEDG) and the Broadcasting Organisations of Nigeria (BON), Osinbajo explained that petrol could sell for N220 or more if the government had completely removed subsidy on the product.

“The NNPC is the sole importer of petroleum. So, it is from the balance sheet of the NNPC that the subsidy is being taken,” he said.

“Now, let me say that if today, you are to remove subsidy, petrol price could go as high as N220 per litre or higher.

“There is no country in the world, not even the wealthiest ones that don’t run some type of subsidy or the other.”

Interestingly, Osinbajo had in August, 2016 said the federal government had saved N1.4 trillion for not paying oil subsidy.

“With the deregulation of the downstream petroleum sector, there has been a significant increase in the availability of petrol throughout the country for the savings of N1.4 trillion on subsidy payments alone,” he had said.

In December 2016, he also said subsidy removal had offset a burden of not less than N15.4 billion monthly from the federal government.