Petrol Subsidy Gulps N4.8trn Yearly – FG

Petrol Subsidy Gulps N4.8trn Yearly – FG

The Federal Authorities by way of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) acknowledged on Tuesday that gas subsidy was gulping about N4.8tn from its purse.

The Chief Govt Officer, NMDPRA, Farouk Ahmed, disclosed this on the ongoing Power and Labour Summit organised by PENGASSAN in Abuja.

“The monetary implication of PMS subsidy rose to over N400bn month-to-month which interprets to over N4.8tn ($6bn) yearly, making it unsustainable within the brief to medium time period.

“Subsidy on PMS vastly impacted authorities revenues obtainable to all tiers of presidency resulting in incapacity of the federal government to fulfill their obligations.

“Final yr alone, Nigeria imported a complete of about 23.5 billion litres of PMS. Our common day by day truck out over a interval of eight years stood at over 55 million litres per day, with a peak of 66.7 million litres recorded for the yr 2022.

“Within the yr 2022, Nigerian authorities expended greater than N4tn on PMS subsidy. This amounted to about 20 per cent of fiscal funds for the yr, introduced a pressure on the fiscal viability of the federal government, and have become a significant impediment to inclusive participation in downstream petroleum sector,” Ahmed acknowledged.

He identified that gas subsidies had been in Nigeria for the reason that Seventies when authorities routinely bought petrol to Nigerians at under price, however careworn that it needed to be stopped.