Posted by News Express | 27 June 2015 | 3,082 times
Nigeria will probably be hit by fuel shortages in three weeks as the government doesn’t have enough money to pay for gasoline subsidies, says the head of Seplat Petroleum Development Co Plc.
Chief Executive Officer of Lagos-based Seplat, Austin Avuru, raised the alarm on Thursday at a Bloomberg conference at the Nigerian Stock Exchange.
“In three weeks, we will be back to scarcity because we simply don’t have the money to pay for the subsidy,” he maintained.
Nigeria was almost ground to a halt last month during the country’s worst fuel shortage in a decade due to a dispute between oil-product marketers and the outgoing government. The shortage left service stations closed, aircraft grounded, and businesses unable to operate.
A lack of oil refining capacity means Nigeria subsidises gasoline imports and suffers frequent fuel shortages even though it’s Africa’s biggest crude producer of about 2 million barrels a day.
President Muhammadu Buhari, who assumed office on May 29, said this week his government is facing severe financial strain from a Treasury that’s “virtually empty” and billions of dollars in debt.
•Sourced from Bloomberg.com. Photo shows fuel queue.
No comments yet. Be the first to post comment.