Sunday, 20 July 2008
Nigeria considers removing oil subsidies
The Nigerian Government is looking at a systematic removal of the N1.5 trillion subsidy for petroleum products. Abolishing the subsidy over night, however, could prove too difficult to do. A market approach to pricing is definately needed. The current capacity of petroleum production needed for local consumption is 30million barrels per day, but the refineries in Nigeria are only capable of producing about 360,000 barrels out of their capacity of 445,000 barrels.