Petrol subsidy to cost Nigeria's treasury N3 Trillion in 2022

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Selling fuel at a petrol station

Petrol subsidy will cost the Nigerian treasury N3 trillion this year, finance minister Zainab Ahmed has said.

She said this was the money being requested by the Nigerian National Petroleum Corporation

Ahmed who is also in charge of budget and National Planning spoke with newsmen at the end of the Federal Executive Council meeting.

“In 2022, because of the increased crude oil price per barrel in the global market, now at $80 per barrel, and also because NNPC’s assessment is that Nigeria is consuming 65.7 million litres per day, that we would end up with an incremental cost of N3 trillion in 2022,” the minister added.

According to Mrs Ahmed, by implication, the Federal Government will have to make an incremental provision of N2.557 trillion in order to meet subsidy requirements which currently averages about N270 billion per month.

The finance minister further disclosed that only N443 billion is presently available in the 2022 budget meant to accommodate subsidy from January to June.

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She also stated that the current realities on the ground including lack of structures, for now, has necessitated the NNPC to make the request.

That request, she revealed, was considered by the council, which has directed the ministry to approach the National Assembly for an amendment to the fiscal framework as well as the budget.

Meanwhile, the NNPC has assured Nigerians that it has sufficient stock of petrol, to meet the needs of Nigerians.

Mr Garba Muhammad, Group General Manager, Group Public Affairs Division of NNPC, gave the assurance in a statement on Wednesday.

Muhammad, therefore, advised the public not to engage in panic buying of petrol and to ignore all rumours that may suggest otherwise.

“In line with the existing laws of the land, NNPC Ltd. is deeply committed to ensuring energy security for the country,” the group general manager said.

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