Nigeria Scraps Gas Subsidy Consuming 25% of Government Outlays

Nigeria, Africa’s top oil producer, said it’s scrapping gasoline subsidies that account for about a quarter of government spending to free up funds for building infrastructure such as power plants and roads.

President Goodluck Jonathan’s administration says ending the fuel allowance will help save 1.2 trillion naira ($7.5 billion) this year, or about 25 percent of the government’s 4.8 trillion naira spending plan. The money will be channeled instead toward capital projects.