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Fuel Price Hike Is Not About Subsidy It’s Because The Govt Is Broke – Lai Mohammed

The Federal Government says the increase in fuel price is not really about subsidy but it is because the government is broke.

“The current problem is not really about subsidy removal. It is about the fact that Nigeria is broke. Pure and simple,” said Lai Mohammed, the Minister for Information in an audience with newsmen after Wednesday’s National Executive Council meeting.

“It is like when somebody who has been earning N100,000 a month is faced with a situation where his employer says, henceforth you will be earning N10,000 a month. He would need to make some very painful decisions and some very painful adjustments. That is the situation with Nigeria today,” he added.

The Federal government had increased the pump price of petrol by over 60 percent to a range of N135 – N145 per litre.

Labour unions are divided in their response to the hike which they say will bring more suffering to the masses, most of who are in support of the government’s latest decision.

A faction of the Nigeria Labour Congress commenced an indefinite strike yesterday while another is waiting for two weeks after which a joint committee it set up with the government to consider the issues on ground, from fuel price hike to minimum wage demand, will submit its report.

Nigeria’s revenues have taken a hit by the slump in global oil prices, with the commodity accounting for over 70 percent of government revenue.

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