‘2015 budget provides N145.2bn for oil subsidy payments,’ minister says

monjola sotubo

May 6, 2015 1:22 PM

Minister of Finance, Ngozi Okonjo-Iweala made the clarification on Tuesday, May 5, 2015, while addressing newsmen in Abuja.

Minister of Finance, Ngozi Okonjo Iweala

Minister of Finance, Ngozi Okonjo-Iweala has denied reports that the 2015 budget made no provision for oil subsidy payments.

Okonjo-Iweala made the clarification on Tuesday, May 5, 2015, while addressing newsmen in Abuja.

The minister said that contrary to media reports, a sum of N145.2 billion had been set aside for payment of subsidy on petroleum products in the 2015 budget.

“I want to clarify some of the information in the media that the National Assembly passed the budget without the subsidy. This is not true,” she said.

“I also want to share with you that we have sent in a budget with a benchmark price of 52 dollars per barrel, the national assembly passed a benchmark oil price of 53 dollars per barrel. That is one dollar higher than the budget proposal,” she added.

“This generated an extra revenue of N54 billion for the Federal Government; they retained the production volume of 2.2782 million barrels per day and exchange rate of N190 to a dollar,’’ Okonjo-Iweala said.

The minister said that a sum of N100 billion had been set aside for subsidy on Premium Motor Spirit (PMS) while N45.2 billion was allocated for kerosene subsidy.

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