President Muhammadu Buhari has disclosed why his administration decided not to stop the payment of fuel subsidies.
In a chat with Bloomberg, Buhari said that removing fuel subsidies would have led to Nigerians experiencing extremely harsh situations.
The president stated that his administration was working on boosting local capacity in order to stem the inflationary pressures.
According to him, most countries in the western world are implementing fuel subsidies.
"My government set in motion plans to remove the subsidy late last year. After further consultation with stakeholders, and as events unfolded this year, such a move became increasingly untenable.
"Boosting internal production for refined products shall also help. Capacity is due to step up markedly later this year and next, as private players and modular refineries come on board", Buhari stated.
Explaining further, the president said that the exchange rate is "susceptible to external shocks that can suddenly and severely affect Nigerians" and added that "as we step up domestic production – both in fuel and food – the inflationary threat shall diminish, and we can move toward unification.”