ABUJA (Reuters) – Nigeria‘s House of Representatives said on Wednesday it had approved a 161.6 billion naira supplementary budget for 2012 to cover fuel subsidy debts owed to importers and distributors.
The extra budget pushes Nigeria’s spending this year over 5 trillion naira, more than Jonathan’s proposed 4.9 trillion naira budget for 2013.
Jonathan attempted to remove the costly subsidy in January, but was forced to partially reinstate it after a week of strikes and protests brought the country to a standstill.
The subsidy, under which the state buys imported motor fuel at market rates and sells it at a much cheaper fixed rate, is often the single biggest component of the budget. It is also the main cause of cost overruns.
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