NIGERIA PUTS DOMESTIC OIL SUBSIDY AT 85 PCT
NIGERIAN OIL MINISTER RILWANU LUKMAN SAID
TODAY GOVERNMENT SUBSIDY ON DOMESTIC OIL PRODUCTS HAD RISEN
FROM 20 TO 85 PCT AFTER THE FLOTATION OF THE NAIRA CURRENCY
LAST SEPTEMBER.
    THE NAIRA HAS DEPRECIATED BY OVER 60 PCT AGAINST THE DOLLAR
SINCE IT WAS FLOATED AND THE GOVERNMENT SAYS PETROLEUM PRODUCTS
HAD BECOME TOO CHEAP ENCOURAGING SMUGGLING TO NEIGHBOURING
STATES.
    LUKMAN TOLD REPORTERS DOMESTIC OIL PRICES WERE BEING
CRITICALLY STUDIED AND A DECISION WOULD BE TAKEN SOON ON
WHETHER OR NOT TO REDUCE THE SUBSIDY.
    LAST YEAR, THE GOVERNMENT CUT OIL SUBSIDY BY 80 PCT AS PART
OF ITS ECONOMIC ADJUSTMENT PROGRAM.
    OIL FIRMS HAVE ARGUED THAT THE DEPRECIATION OF THE NAIRA
HAS MADE FURTHER REMOVAL OF PETROLEUM SUBSIDY NECESSARY.
 Reuter
