Fuel Subsidy Is Back, FG Spends N600 Billion Monthly

They reserve the right to intervene.” She added, “If the government feels that it cannot continue to allow prices to fluctuate due to high inflation and exchange rates, the government reserves the right to intervene intermittently, and that does not negate the fact that subsidy has been removed.” Contrarily, the Nigerian National Petroleum Corporation (NNPC) has maintained that no subsidy is paid to its account from the federal government.

So, subsidy is definitely back on petrol.”These numbers not only highlight the financial magnitude of the subsidy but also underscore the economic pressures faced by the Nigerian government in maintaining fuel price stability.

Ogbechie broke down the current subsidy figures, stating,“If you look at our daily consumption, say 40 million liters, and we’re spending N500 per liter, that is about N20 billion every day, N600 billion every month, and 7.2 trillion yearly depending on how we look at it.

He further highlighted that with the official closure of the dual exchange rate markets and the consolidation to about N1,300 per dollar, the subsidy on petrol was unmistakably reinstated.“The moment the two markets officially closed, officially the market went to about N1,300.

Meanwhile, Mrs.

Olu Verheijen, Special Adviser to the President on Energy, elucidated the government’s stance,“The subsidy was removed on May 29.

Mele Kyari, GCEO of NNPC, stated in August 2023,“I told you there’s no subsidy whatsoever, we are recovering our full cost from the products that we import..

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