FG will use Eurobond cash and borrow more to fund petrol subsidy – Minister of Finance, Zainab Ahmed

Minister of Finance, Zainab Ahmed has explained how the federal government will be funding petrol subsidy.

Speaking with Reuters on the sidelines of an Arab-African conference in Cairo, the Minister said the federal government will use $2.2 billion of the fund raised via Eurobond to cater for petrol under-recovery costs.

Ahmed also said the FG would target more local borrowing in 2022 to fund subsidy payments, but won’t tap the Eurobond market this year.

She said: “Rising oil prices have put us in a very precarious position … because we import refined products … and it means that our subsidy cost is increasing”

Ahmed also said the federal government is working with lawmakers to boost revenues. She added that the rise in oil prices means that borrowings will increase more than planned.