By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)-Nigeria’s senate on Tuesday approved $2.6 billion (N522.2 billion) for fuel subsidy payment and fight against insurgents in the Northeast, according to a Bloomberg report quoting a recording of the proceedings at the sitting.

The report says Nigeria relies on refined fuel imports to meet more than two-thirds of domestic needs and refunds importers as much as a third of the cost of supply.

According to Bloomberg, fuel queues resurfaced two (2) months ago as importers claimed the government was withholding subsidy payments. President Muhammadu Buhari requested approval for the additional spending as the lines persisted.

The report says that despite the dwindling finances of Nigeria as a result of last year’s drop in oil prices, Buhari’s administration has for now ruled out scrapping fuel subsidies.

It said 2016’s budget hasn’t yet been finalised, though it may climb by 56 percent to about N7 trillion, according to a person who attended a briefing on the government’s plans and asked not to be identified because the matter is private, the Bloomberg report said.