FG’ll tap $2.2bn Eurobond for fuel subsidy funding– Minister

Federal Government is planning to tap €2bn ($2.2bn) by this month or next of the money it raised in a Eurobond sale last year and targets more local borrowing in 2022 to help fund subsidy on Premium Motor Spirit.

This was made known by Minister of Finance, Budget and National Planning, Ahmed Zainab,

It was also gathered on Tuesday that Nigeria’s crude oil production dropped from the 1.399 million barrels per day figure recorded in January this year to 1.258 million barrels per day in February.

This indicated a daily crude oil production loss of 141,000 barrels in the month of February 2022, according to the latest monthly oil market report for March 2022 released by the Organisation of Petroleum Exporting Countries.

Speaking in Cairo, Egypt, on the side-lines of an Arab-African conference, Ahmed told Reuters that the €2bn which the Federal Government plans to tap was needed to fund subsidy following the rise in global crude oil prices.

The recent spike crude oil prices triggered by the war in Ukraine had caused an increase in the cost of refined petroleum products.

The refined products are largely imported into Nigeria due to the dormancy of the country’s refineries under the management of the Nigerian National Petroleum Company Limited.

Ahmed, however, stated that the country would not tap the Eurobond market this year.

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