The Federal Government has finally approved the payment of N407.07bn as fuel subsidy to oil marketers to end the lingering fuel scarcity, according to a statement by the Minister of Finance, Mrs. Kemi Adeosun.
The payment, according to the statement signed by the Director of Press, Ministry of Finance, Marshal Gundu, includes arrears from the 2014 financial year as well as that for the current year.
The minister called on the marketers to reciprocate the gesture of the Federal Government by ensuring that queues by motorists disappear within the shortest time possible.
“The minister stated that the President had directed that payment be made immediately in order to bring to a quick end the lingering fuel crisis, which has caused great suffering to Nigerian families and businesses. She also said that despite dwindling revenues, the government was committed to ensuring continuous availability of fuel to Nigerians,” the statement said.
A total of N143bn was approved by the National Assembly in April this year for subsidy payment for the 2015 fiscal period.
A breakdown of the amount showed that the sum of N100bn was provided as subsidy on Premium Motor Spirit, while N43bn was approved for Dual Purpose Kerosene.
Following the utilisation of the amount, President Muhammadu Buhari had sent a supplementary budget to the Senate requesting additional N413bn for payment to the marketers.
However, the Senate increased the subsidy budget by N109bn, bringing the amount approved by the upper chamber for that purpose to N522.25bn.