By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-President Goodluck Jonathan has proposed to cut half  fuel subsidy in order to reduce spending after a drop in oil prices, according to a report by Bloomberg.

The report affirmed that Nigeria’s government plans to reduce fuel subsidies next year to N458.6 billion from N971.1 billion, David Mark Nigeria’s senate president said.

He cited a revised 2015 Medium Term Expenditure Framework and Fiscal Strategy Paper submitted by President Jonathan.

In January 2012, President Jonathan attempted to remove the oil subsidy and was met with stiff opposition by the masses which forced the federal government to partially reinstate it.

World oil price decline is affecting Nigeria’s revenue close to 70 percent that is generated from oil.

Ngozi Okonjo-Iweala, Nigeria’s finance minister has planned to cut expenditure by six (6%) percent in 2015 and lower the budgeted benchmark oil price to $73 per barrel from $77.5 this year.

The Bloomberg report say kerosene subsidies will also be cut to N156 billion from N250 billion.