The Federal Government has said it increased the price of petrol to raise money to run the economy, since the country was broke.
While briefing newsmen at the end of the Federal Executive Council meeting, chaired by President Muhammadu Buhari, on Wednesday, Minister of Information, Alhaji Lai Mohammed, stated that the Federal Government increased the price of petrol to raise money to run the system, since the country was broke.
The outspoken minister added that Nigeria’s foreign earnings had drastically reduced in recent times and that the only way out of its present financial quagmire was to look inwards to generate more money.
The minister said the hike in the price of petroleum from N86.50 to N145 is not about subsidy removal.
“The current problem is not really about subsidy removal. It is about the fact that Nigeria is broke. Pure and simple.
“It is like when somebody who has been earning N100,000 a month is faced with a situation where his employer says, henceforth you will be earning N10,000 a month. He would need to make some very painful decisions and some very painful adjustments. That is the situation with Nigeria today,” Lai Mohammed said.
“A few months ago, we were earning as much as $100 for every barrel of crude. In the months of February and March, we were short of…so, we no longer have the resources, the foreign exchange to bring in refined fuel products. And our economy is shrinking.
“We appreciate the fact that the decision is going to affect everybody. We appreciate what we are going through, but Nigerians should also know that the government has the responsibility at times to take very difficult decisions. So, it is not always about popularity,” he added.