President Muhammadu Buhari has requested the approval of a supplementary budget to cover mainly the 413 billion naira ($2.1 billion) of debt owed to fuel importers under a subsidy scheme.
Buhari asked the Senate to approve 465.64 billion naira to cover subsidies, funding for the military operation, code-named Lafiya Dole against the militant insurgency in the northeast, prisoner rations and pay for out-going and incoming legislative aides.
This was contained in a letter which the President forwarded to the Senate today.
Pushing through the supplementary budget will be key to resolving fresh fuel shortages and closing the book on debts still owed to importers from 2014 and this year.
Subsidized imports account for about half of Nigeria’s gasoline needs and firms bringing in the product have not been paid since Buhari came to power at the end of May. They are increasingly struggling to finance their purchases with low dollar availability and shrinking credit lines.
Fuel shortages and panic-buying have returned to major cities, creating long queues outside retail stations. [myad]
