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HomeTop NewsNigeria's petrol subsidy spending hits N2.57 trln in 8-month, says NNPC

Nigeria’s petrol subsidy spending hits N2.57 trln in 8-month, says NNPC

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The cost of Nigeria’s fuel subsidies rose to N525.714 billion in August, bringing the total spent this year to N2.568 trillion, according to figures submitted to the government by state oil company NNPC.

The ballooning costs of keeping petrol prices low in Africa’s most populous nation are straining the budget and draining revenue from the Nigerian National Petroleum Corporation Limited (NNPC).

In April, Nigeria’s parliament approved a N4 trillion petrol subsidy for this year after the government in January reversed a pledge to end its subsidies to avert protests in the run-up to presidential elections in February 2023.

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NNPC has not remitted any money to the federation account from revenue earned from oil exports this year due largely to subsidy costs.

August’s bill compared with N448.782 billion in July, according to a document NNPC submitted on Friday to the Federation Account Allocation Committee (FAAC).

Part of the increased cost was down to a bigger daily supply of petrol, which rose to 71.8 million litres, up nearly 10 per cent from July, according to information submitted at the same meeting by regulator Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Oil production in August averaged 1.18 million barrels per day, well below the nation’s OPEC quota of 1.8 million bpd, due in large part to theft from pipelines that has curtailed production.

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