Rising crude oil price is “double-egded sword” for Nigeria – Finance Minister

Nigeria’s Minister of Finance, Budget and National Planning, Zainab Ahmed has called the rising price of crude a “double-edged sword,” as the Federal Government seeks a deal with Organised Labour over fuel prices.

This was disclosed in a report by Reuters on Monday. The Minister disclosed that the FG forecasts an optimistic outlook on the rising prices but must deal with the “tussle” with Labour over subsidies and rising local prices of fuel.

According to the report, she said that the rising oil price is a double-edged sword for Nigeria as the rising oil price boosts Nigeria’s 2021 budget but creates fuel price headache at the same time.

READ: N250bn to be spent to fund compressed Natural Gas infrastructure

Oil prices are averaging around $50 per barrel, above the $40 per barrel projected in the N13.6 trillion ($35.74 billion) budget document.

What you should know: The Minister of State for Petroleum Resources, Timipre Sylva, said that there will be no increment in the pump price by the Federal Government until the conclusion of its consultation with Organised Labour.