The Nigerian National Petroleum Corporation (NNPC) says it spent about 31 percent of its revenue between January and September this year on petrol subsidies.
The corporation, in a report submitted to the Federation Account Allocation Committee (FAAC) at its last meeting, said the sum of N864.07billion was spent on petrol subsidy out of N2.7 trillion revenue in the period under review.
According to the report, the NNPC did not incur petrol subsidy cost in January, but spent N25.37billion on subsidising the product in February.
The subsidy cost grew to N60.39billion and N61.96 billion and N126.29 billion in March, April, and May, respectively.
The corporation said it spent N164.33billion, N103.28billion, N173.13billion and N149.28billion on petrol subsidy in June, July, August and September.
READ ALSO: NNPC Spends N149bn On Oil Subsidy Payment, Remits N67bn To Federation Account In September
Since November last year, the price of PMS has remained unchanged despite the increase in crude oil prices in the international market.
FG To End Subsidy Payment June 2022
The Minister of Finance, Budget and National Planning, Zainab Ahmed, at a panel session during the 27th National Economic Summit held in Abuja recently, said the Federal Government will suspend the payment of subsidy on petrol by June next year.
Ahmed said, “In our 2022 budget, we only factored in subsidy for the first half of the year; the second half of the year, we are looking at complete deregulation of the sector, saving foreign exchange and potentially earning more from the oil and gas industry.
At the session, the World Bank Country Director for Nigeria, Shubham Chaudhuri, stated that the continued spending by the Nigerian government on petrol subsidy, could be estimated at N2.9 trillion this year.
According to him, this fund can be channelled to cater to the urgent needs in primary healthcare, basic education and rural roads construction.
“This year, Nigeria is on track to spend N2.9tn on PMS subsidy, which is more than it spends on health,” he said.
 says it spent about 31 percent of its revenue between January and September this year on petrol subsidy.){kind=link}