fbpx
COVERNEWSLETTEROIL & GAS

Nigeria Spent N123.73bn on Petrol Subsidy In September

Smuggling Persists As Petrol Consumption Rise By 70% In May

The Nigeria government through the Nigerian National Petroleum Corporation (NNPC) spent N123.73 billion on petrol subsidy in September.

The NNPC disclosed this in its report to the Federation Account Allocation Committee (FAAC) for October.

The corporation stated that the N40 billion differed deduction would be removed from its contribution to FAAC in November.

Due to the non-allocation for petrol subsidy in 2021 Budget, the NNPC had been deducting funds for petrol subsidy from FAAC remittance, which it described as ‘value shortfall’ in its account.

READ ALSO: FG Plans To Suspend Subsidy By June 2022

NNPC said, “The sum of N265, 135,106,526.57 was the Gross Domestic Crude Oil and Gas revenue for the month of September 2021.”

This year alone, the government has spent about N800 billion as petrol subsidy.

However, there are plans by the government to put an end to the payment of subsidy on petrol imports as from June next year as disclosed by the Minister of Finance, Budget and National Planning, Zainab Ahmed.

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.”

About Author

Ife Ogunfuwa is an award-winning reporter who is versed in reporting business and economy, technology, gadgets reviews, telecoms, tax, and business policy review, among others. She loves telling stories behind the numbers. She has professional certifications in business and financial reporting. You can reach her via – [email protected]

Comment here

This site uses Akismet to reduce spam. Learn how your comment data is processed.