CBN wants FG to reduce oil subsidy payment

As revenue from oil dips on account of fallen oil prices in the international market, the Central Bank of Nigeria (CBN) has advised the Federal Government to reduce payment of oil subsidy to oil marketers.

The apex bank also flayed the states and local government councils in the country for solely depending on the statutory allocations for survival.

Mr Godwin Emefiele, speaking on the state of the Nigerian economy after the November meeting of the Monetary Policy Committee meeting of the CBN in Abuja, called for the deregulation of the Nigerian oil industry.

In the 2015 fiscal year, the apex bank boss advised the Federal Government to reduce the volume of money paid as subsidy with a view to managing the meagre resources coming as oil proceeds into the government coffers.

If the subsidy payment is reduced, Mr Emefiele said, the Federal Government would be able to deploy the saved money to other sectors of the economy for growth and development.



The governor also flayed the wholly dependence of sub-national governments on the statutory allocation for their survivals.

According to him, the majority of states and local governments cannot survive without the monthly lifeline they were receiving form the federation account.

To ensure stability and progress in the states, Mr Emefiele said states and local government councils needed to improve on their collection of Internally Generated Revenue.

On the downward revision of the oil price benchmark from $78 per barrel to $73 in the next year budget, the apex bank boss commended the gesture, but added that the reduction was too optimistic.
(TRIBUNE)