By Tony Obiechina, Abuja
The Federal government has debunked media reports that it is seeking new loans from the World Bank in order to mitigate the effect of the planned petroleum subsidy removal.
The Special Adviser to the Finance Minister on Media and Communications, Mr Yunusa Tanko Abdullahi said in a statement on Friday night that “the news story is not correct”.
The statement reads: “The attention of the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, has been drawn to newspaper reports suggesting the federal government is seeking new loans to cushion the effect of the pending fuel subsidy removal.
“The news story is not correct. This is the same loan that the Honourable Minister had explained on several occasions that the $800 million facility the country recently got from the World Bank for post-petrol subsidy removal palliative was awaiting parliamentary approval for the federal government to commence disbursement.
“The government is therefore not seeking another loan for the pending fuel subsidy removal. It is one and the same.
It will be recalled that the facility would be deployed to provide succor to 10 million households, who are expected to get N5,000 each for a period of six months.
“The minister had explained that the initial duration of the palliatives meant to cushion the effects of the planned subsidy removal on vulnerable Nigerians was for six months, but would be reviewed upon extensive consultation with stakeholders.
Ahmed explained: “The $800 million has been negotiated and approved by the Federal Executive Council (FEC) and we now have a request before the parliament for approval. And once the parliament approves it, the next administration can decide on the utilization.
“We’ve also been doing preparatory work side by side along the approval process. This includes expanding the committee to include members of the transition team of the President-Elect.
“The process will include the verification of the social register which will be used for electronic transfers of the funds.”
