REVEALED: N120bn monthly petrol subsidy higher than the annual budgets of three states

The N120 billion reportedly spent on petrol subsidy on a monthly basis is higher than the annual budgets of three states, according to Daily Trust findings. At a press briefing in Abuja on Thursday, the Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mele Kyari, said the federal government can no longer afford to […]

The N120 billion reportedly spent on petrol subsidy on a monthly basis is higher than the annual budgets of three states, according to Daily Trust findings.

At a press briefing in Abuja on Thursday, the Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mele Kyari, said the federal government can no longer afford to spend such a huge sum on subsidy.

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Kyari, who said NNPC currently absorbs the cost differential which is recorded in its financial books, revealed that while the actual cost of importation and handling charges amounts to N234 per litre, the government is selling at N162 per litre.

He said market forces must be allowed to determine the pump price of petrol in the country but was silent on when the regime will take off.

He, however, added that the government was being considerate of the actual impact of the price increase on Nigerians.

“Today, NNPC is the sole importer of fuel. We are importing at market price and we are selling at N162. Looking at the current price situation, the market price could have been between N211 to around N234 per litre.

“The meaning of this is that the consumers are not paying for the full value of the PMS (petrol) that we are consuming and therefore the NNPC is bearing that cost.”

Daily Trust reports that the N120 billion monthly subsidy on petrol is higher than the 2021 budgets of Yobe (N106.9bn) Osun (N109bn) and Ekiti (N109.6bn).

At N22 million for a unit of a primary healthcare centre (PHC) provided by the National Primary Healthcare Development Agency (NPHDA) as of 2017, N120 billion can build 5,500 units of such facilities with the 36 states and the Federal Capital Territory (FCT) getting 151 units each.