Despite being one of Africa's largest oil producers, Nigeria has limited refining capacities. Thus, the country has relied on crude oil swaps, exchanging its crude oil for imported gasoline, which it then subsidized. These hit Nigeria's revenue, foreign exchange reserves, and led to growing debt, and have been eliminated by President Bola Tinubu.
Nigeria's President Bola Tinubu requested that parliament approve spending of 500 billion Nigerian naira ($638 million) to lessen the impact of the termination of gasoline subsidies.
According to a document read aloud at a session of the House of Representatives on Wednesday by Speaker Tajudeen Abbas, the funds will come from a supplemental budget of 819.5 billion naira ($1,025 billion) that was previously authorized by the MPs.
Following Tinubu's announcement in his inaugural speech on May 29 that fuel subsidies will ultimately expire, transportation costs and food prices have skyrocketed in Africa's most populous country.
In order to offset the higher cost of living brought on by the subsidy reduction, labor unions have called for better pay and other forms of compensation.
This request are expected to be discussed by the legislators on Thursday, reports say.
Nigeria's President Bola Tinubu requested that parliament approve spending of 500 billion Nigerian naira ($638 million) to lessen the impact of the termination of gasoline subsidies.
According to a document read aloud at a session of the House of Representatives on Wednesday by Speaker Tajudeen Abbas, the funds will come from a supplemental budget of 819.5 billion naira ($1,025 billion) that was previously authorized by the MPs.
Following Tinubu's announcement in his inaugural speech on May 29 that fuel subsidies will ultimately expire, transportation costs and food prices have skyrocketed in Africa's most populous country.
In order to offset the higher cost of living brought on by the subsidy reduction, labor unions have called for better pay and other forms of compensation.
This request are expected to be discussed by the legislators on Thursday, reports say.