Lagos Chamber of Commerce and Industry, LCCI, has described fuel subsidy which the World Bank said cost Nigeria N731 billion in 2018, as the biggest fiscal burden currently staring the nation’s economy in the face.
LCCI, which response was based on the World Bank report, released on Monday in Abuja focussed on key developments in Nigeria’s economy in 2018, added among other things that the Excess Crude Account, ECA, was virtually depleted during the period.
The Director General, LCCI, Mr. Muda Yusuf, said the biggest fiscal burden on the economy today is perhaps the petroleum subsidy regime. He explained that it is a big hole in the finances of government and puts tremendous pressure on the foreign reserves and the foreign exchange market as well as exerts immense stress on the nation’s treasury.
He calls on the appropriate authorities to focus on providing a solution as it has remained a cause for concern.