Zainab Ahmed, the Minister of Finance, has detailed how the federal government will fund the petrol subsidy.
The Minister told Reuters on the margins of an Arab-African summit in Cairo that the federal government will utilise $2.2 billion from the eurobond fund to address under-recovery expenses for gasoline.
The FG will also pursue additional local borrowing in 2022 to fund subsidy payments, but will not tap the eurobond market this year, according to Ahmed.
Ahmed also stated that the federal government is collaborating with legislators to increase income. She went on to say that the spike in oil prices meant that borrowings will be more than expected.