Nigerians should expect petrol price increase, says Rewane

The Managing Director and Chief Executive Officer, Financial Derivatives Company Limited, Mr Bismarck Rewane, has said fuel subsidies are a huge drain on government’s revenue.

Rewane stated this in his presentation at the Lagos Business School Breakfast Session on May 8, a copy of which was obtained by Punch correspondent on Tuesday.

He noted that the World Bank put Nigeria’s total subsidy bill in 2018 at N731bn, saying, “A gradual reduction in subsidy payments [is] anticipated. Only N305bn set aside for under-recovery in 2019 budget; expect an increase in the pump price of fuel.

“40 per cent shortfall in provision for subsidies (under-recoveries) points to possible price increases.”

The financial expert, however, said a petrol price hike would result in high inflationary pressure.

– Punch