Subsidy reportedly back as FG pays N169.4 billion in August

The federal government reportedly paid N169.4 billion as subsidy in August to keep the pump price at N620 per litre.

According to the report, there have been several reports suggesting that the current price stagnation despite the worsening exchange rate and international crude price crossing $95 a barrel suggests a return of subsidy.

A document by the Federal Account Allocation Committee (FAAC), sighted by DailyTrust on Wednesday, September 20, showed that in August 2023, the Nigerian Liquefied Natural Gas (NLNG) paid $275m as dividends to Nigeria via NNPC Limited.

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NNPC Limited used $220m (N169.4 billion at N770/$) out of the $275m to pay for the PMS subsidy. Then NNPC held back $55m, illegally.

The revelation by FAAC effectively indicates that the subsidy is back and NNPC is now taking NLNG dividends to pay the subsidy, the report added.