In an exclusive, Reuters reported that a Nigerian reform proposal document shows that Nigerian President Muhammadu Buhari’s advisors have suggested that he totally overhaul the root and branch of Africa’s largest oil industry and increase borrowing to aid in paying off the $20 billion in outstanding government debts.
This recommendation came from the ‘transition committee’ which was set up by Buhari in April this year. Last month they summited 800 pages of policy recommendations to the Presented, however they were not made public.
According to an executive summary of the recommendations obtained by Reuters, the committee has suggested cutting the size of the civil service, overhauling the state oil company and removing the expensive petrol and kerosene subsidies. They also recommended paying salary arrears along with fuel subsidies straight away in order to prevent “mass labor unrest”.
The report expressed urgency in taking on these reforms, “time is of the essence, and expectations are high. The administration must act now.”
As written by Reuters, the paper details the frightful state of public finances in the country which has worsened due to the halving of oil prices last year. Due to the fact that Nigeria relies on oil exports for 80 percent of public revenues the lowering of oil prices hit Nigeria’s economy hard.