The Federal Government has directed the Nigerian National Petroleum Corporation to reduce the pump price of petrol from N145 to N125.
This, the government said, was to reflect the current crash in the global price of crude oil.
So also, the Central Bank of Nigeria on Wednesday announced a N1.1tn intervention fund to support critical sectors of the economy.
The CBN Governor, Mr Godwin Emefiele said this in a statement made available to journalists.
The governor in the statement said the out of the N1.1tn, about N1tn would be used to support the local manufacturing sector as well as boost import substitution.
He added that the balance of N100bn would be used to support the health authorities to ensure laboratories, researchers and innovators work with global scientists to patent and produce vaccines and test kits in Nigeria.
This, he said, was imperative following the Coronavirus pandemic, adding that the N100bn would enable the country prepare for any major crises ahead.
He said given the continuing impact of the disease on global supply chains, the CBN will increase its intervention in boosting the economy.
He said, “First the CBN is directing all Deposit Money Banks to increase their support to the pharmaceutical and healthcare industries.
“In local drug manufacturing, in increased bed count in hospitals across Nigeria, in funding intensive care as well as in training, laboratory testing, equipment and R&D.
The President, Muhammadu Buhari, approved the price reduction after the Minister of State, Petroleum Resources, Mr Timipre Sylva, briefed him on the matter.
Sylva also made a presentation to the Federal Executive Council on Wednesday.
“The drop in crude oil prices has the expected open market price of imported petrol below the official pump price of 145 per litre,” the document said.
It added, “Therefore, the FG is directing the NNPC to reduce ex-coastal and ex-depot prices of PMS to reflect the current market realities.”
Speaking with journalists after the session, he said the new price would take “immediate effect”.
The government directed the NNPC and the PPPRA to work out the details.
He added that the pump prices of diesel and kerosene would also be reduced.
Sylva said the NNPC would roll out all the new prices soon.
Crude oil sells for about $29 per barrel, dropping from about $60 in December.