The Nigeria Extractive Industries Transparency Initiative (NEITI) has recently released information indicating that the Nigerian government allocated N15.57 trillion for the Petrol Motor Spirit (Petrol) subsidy between 2006 and 2023.
This disclosure was made during the presentation of the 2022 and 2023 Independent Oil and Gas Industry Reports in Abuja. The unveiling of the report was attended by George Akume, Secretary to the Government of the Federation, Ola Olukoyede, chairperson of the Economic and Financial Crimes Commission (EFCC), and various other government officials.
According to NEITI's report, the highest amount disbursed for fuel subsidy, also referred to as under-recovery and price differentials, reached N4.714 trillion in 2022.
The report revealed that as of June 2024, the federal government was owed $6.071 billion and N66.4 billion in unpaid revenues from the oil and gas sector.
Despite President Bola Ahmed Tinubu's announcement of its removal in May 2023, fuel subsidy has remained a contentious issue. The World Bank suggested that, based on the price at which Nigerians purchase petrol, the product continues to be subsidized. Additionally, former President Olusegun Obasanjo stated that fuel subsidy has made a return.
On the other hand, the Nigerian National Petroleum Company clarified that it only addresses petrol importation shortfalls between the company and the federation.
Aliko Dangote, President of Dangote Group, has urged the Nigerian government to completely eliminate fuel subsidies. This call comes after Dangote Refinery's petrol entered the Nigerian market on September 15, 2024, through NNPCL.
While Dangote advocates for the complete removal of fuel subsidies, which would result in petrol prices exceeding N1,100 per liter, Nigerians have expressed concerns about the high energy costs.
Moreover, a recent report by the Major Marketers Association of Nigeria (MEMAN) revealed that the landing cost of petrol imports decreased to N981.08 per liter in September 2024 from N1,130 in July.