Minister of Finance Mrs Kemi Adeosun yesterday said the Federal Government is not paying subsidy on oil.
She spoke at the end of the Federal Executive Council (FEC) meeting chaired by President Muhammadu Buhari at the Presidential Villa, Abuja.
She was with the Minister of Information, Lai Mohammed, Minister of Power, Works and Housing, Babatunde Fashola and the Minister of Mines and Steel, Kayode Fayemi.
According to her, the Nigerian National Petroleum Corporation (NNPC) is directly bearing the loss, which also has impact on what goes to the Federation account.
Speaking onsubsidy, she said: “On the question of subsidy, the price of oil for Nigeria today is a double-edge sword. So, every dollar that goes up we get more revenue but also because we are importing refined petroleum increases the landing cost of fuel.”
The council also approved N2.338 billion for the purchase of operational vehicles for anti-smuggling task force and for acquiring staff accommodation.
Mrs Adeosun said N1.2 billion was approved for acquiring bedroom units at Life Camp in Abuja for Customs and N1.128 billion for 50 operational vehicles for anti-smuggling task force.
She said: “The second approval was for the purchase of 50 operational vehicles that are going to be deployed for anti-smuggling or anti-rice smuggling task force that is being put together, which Customs will be leading.
“We felt that it is important that we don’t want Customs going to seize rice in the markets. Customs should actually stop rice coming in at border points and Customs indicated that they need additional vehicles, additional resources as well as more information driven measures that will be taken. But what was approved today was the purchase of 50 vehicles as part of these efforts. The contractor is Elizade and the value is N1.128 billion.”
Asked to explain why Nigeria cannot fully fund its budget with the series of internally generated revenues declared by many government agencies, Mrs Adeosun said: “On the funding of the budget, Customs will report that they made a trillion, FIRS and so on, that is absolutely correct. But if you also follow those who cover the FAAC accounts, you will know that that money is shared every month among the three tiers of government. That is what makes up the FAAC. The FAAC is made up of Customs revenue, FIRS revenue and NNPC revenues.”
Fashola said his ministry presented a report to the Council on approvals it obtained from the FEC in the last two years.