ABUJA, June 2 A Nigerian parliamentary committee
has proposed a marginal increase in petrol prices to help fund
badly needed road repairs in the West African nation, according
to a document seen by Reuters.
Raising fuel prices is politically sensitive in Nigeria
where many people are struggling amid the first economic
recession in a quarter of a century and with annual inflation
hitting 17.24 percent in April.
The Senate Committee on Works has recommended a fuel levy of
5 naira ($0.0159) per litre on imported and locally produced
petrol to fix roads in Nigeria, according to the proposal
approved on Thursday.
The government last year increased gasoline prices to 145
naira a litre as it struggled to fund capped prices amid a steep
devaluation of the naira currency and low oil prices.
The Senate has yet to debate the motion which would also
have to be approved by the lower chamber, the House of
The government has proposed a record 7.44 trillion naira
budget for 2017 that includes increasing capital expenditure by
a quarter to fix pot-holed roads, overhaul railways and improve
But funding has proved difficult due to low oil prices.
Talks with the World Bank over a loan have stalled over a lack
of required economic reforms, diplomats say.
Parliament approved the 2017 budget on May 11 but a
government official said this week talks were still ongoing with
lawmakers before Acting President Yemi Osinbajo could sign it
into law. President Muhammadu Buhari is in Britain for medical
($1 = 314.5000 naira)
(Reporting by Camilus Eboh; Writing Ulf Laessing; Editing by