The economy will be negatively impacted by the N4trillion vote for petrol subsidy in the revised 2022 budget passed yesterday by the National Assembly, experts have said.The Centre for the Promotion of Private Enterprise Chief Executive, Dr. Muda Yusuf, is concerned about the country’s macroeconomic outlook in the near term.
He said: “The outcome of these approvals include increased borrowing, higher debt service, surge in fiscal deficit, heightening inflationary pressure and a risk of further depreciation in the naira exchange rate.”
The National Operations Controller of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Mike Osatuyi, said the N4 trillion subsidy “is child’s play because we are still heading to a N6 trillion subsidy regime by year-end”.The Executive Secretary of the Major Oil Marketers Association of Nigeria (MOMAN), Clement Isong, said the subsidy increase was the government’s response to the mood of Nigerians.