Nigeria’s Petrol Subsidies Hit Past $1bn In August 2023

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………Total Subsidy Spent This Year Stands At N2.568trn

The Nigerian National Petroleum Company [NNPC] has informed that cost of Nigeria’s fuel subsidies rose to N525.714bn [$1.22bn] in August 2023.
The figure brings the total spent this year alone to N2.568trn, according to the figures submitted to the government by state oil company NNPC.

The ballooning costs of keeping petrol prices low in Africa’s most populous nation are straining the budget and draining revenue from the Nigerian National Petroleum Corp (NNPC).
Last April, the national assembly approved a N4trln petrol subsidy for this year after the government in January reversed a pledge to end its subsidies to avert protests in the run-up to presidential elections in February 2023.

Also Read: NNPC Boss Recounts Benefits of Morocco Gas Pipeline Project

According to a document submitted on Friday to the Federation Account Allocation Committee, [FAAC], the state oil company has not submitted any money to the this year due largely to subsidy costs. August’s bill compared with N448.782bn in July.

Part of the increased cost was down to a bigger daily supply of petrol, which rose to 71.8 million litres, up nearly 10% from July, according to information submitted at the same meeting by sector regulator, the Nigerian Midstream and Downstream Petroleum Regulatory Authority [NMDPRA].

Also Read: NNPC Boss Recounts Benefits of Morocco Gas Pipeline Project

Further in the records, oil production in August averaged 1.18 million barrels per day, well below the nation’s OPEC quota of 1.8 million bpd, due in large part to theft from pipelines that has curtailed production.

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