NNPC spends N945.5bn on Oil subsidy in 4 months

The Nigerian National Petroleum Company (NNPC) Limited has disclosed that it spent over N947.51 billion subsiding petrol imported into the country from January to April.

The amount was disclosed in the latest NNPC Federation Account Allocation Committee May report published on its website on Wednesday.

A breakdown from the report showed that N210.38 billion was paid in January, increasing to N219.78bn in February.

When the international price for oil rose steadily in March, NNPC said N245.77 billion was paid, increasing again in April to N271.58bn.

This indicates that between January and April subsidy payment rose by 29 percent.

It also reported that NNPC had informed the FAAC that it would be deducting from its remittance an estimated value shortfall of N874.5bn in May 2022 proceeds due for sharing for June among the three tiers of government.

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Oil price has been trading high since February which has further raised the cost of importation of Premium Motor Spirit (PMS) to the country and cut off Nigeria’s oil revenue.

According to the National Bureau of Statistics (NBS) Nigeria’s petrol importation increased to N1.51 trillion in the first quarter of 2022, a N62.9 billion difference when compared to N1.44 trillion spent in the fourth quarter of 2021.