Nigeria Pays N1.8trn Fuel Subsidy in Six Months –NNPC
Nigerian government paid about N2 trillion as subsidies on Fuel in the first six months of the fiscal year 2022, according to official data from the state-owned oil company.
According to the report, Nigerian National Petroleum Corporation limited hinted about the development, that a total of N1.78 trillion was used to close the gap between market price and pump price paid by the locals between January and June 2022. READ: Nigeria Raised N1.8trn from Bonds in 6-Month
The reduction impacted the recently half privatized NNPC limited to contribute money to federal accounts. Recall that Zain Ahmed, finance minister signalled early this month that Africa’s biggest oil producer could spend up to $16.2 billion next year if it keeps the subsidy in place.
Successive governments in Nigeria have tried but failed to remove or cut the subsidy, a politically sensitive issue in the country of 200 million people. In July alone, NNPC paid N448.78 billion towards the subsidy, a 41% jump from the amount paid in June and the single biggest monthly payment this year, data showed.
Nigeria imports all its refined fuels because local refineries were shut down due to years of neglect. Oil production is throttled by theft of crude and vandalism of pipelines, which means Nigeria is spending more on fuel imports than it is getting from lower crude oil production. # Nigeria Pays N1.8trn Fuel Subsidy in Six Months –NNPC
