Zainab Ahmed, Minister of Finance, said the country’s revenue has dropped by 65 per cent.
Ahmed stated this while speaking on NTA’s ‘Good Morning Nigeria’ programme on Monday.
According to the minister, the drop in revenue made President Muhammadu Buhari decide to discontinue the payment of petroleum subsidy.
She noted that fuel scarcity would occur if pertol subsidy returns because the government lacks the money to pay the marketers.
She said: “What we have been doing is not sustainable. If we bring back fuel subsidy, we will fail because we will not be able to pay it and the problem of disputes with marketers will come back, then we will have queues again. We just cannot afford it and therefore this deregulation must be made to work.
“We appeal to Nigerians to understand that in the past when subsidy was done, we could afford to do it but right now, we cannot pay. Remember that right now our revenue has gone down by about 65 per cent. So, it is not business as usual. We cannot do what we used to do anymore.”
Ahmed stated that the price of petrol would henceforth be determined by the price of crude oil.
When asked if subsidy would return if the price of crude oil bounces back to how it was in previous years, she said it was unlikely that would happen.
She, however, said the decision remains that subsidy would not return.