The Nigerian National Petroleum Company Limited, NNPCL, said it’s subsidising fuel.
Remember that President Bola Tinubu in his inaugural speech said, “fuel subsidy is gone.”
Views that subsidy regime is still in place have been met with denials by government officials.
In fact those in the business have said repeatedly that the recent landing cost of petrol is N1,117, while it’s generally sold below a thousand naira, indicative that it’s still enjoying subsidy.
However, NNPCL in its financial statement for the fiscal year ending December 31, 2023, cleared the air on the matter.
It said, it has been subsidising fuel price at the instance of the government, and to the tune of of N5.1tn in under-recovery last year.
In this case, under-recovery is the shortfall between the subsidised fuel price and that of importation of the product.
In the report, the state-owned energy firm declared that on account of the subsidy, the federal government incurred a debt of N5.1tn.
It went on to explain that the said N5.1tn is a cumulative amount used as expenses from crude oil supply for domestic use and other receivables on behalf of the federation following instruction from government not to sell its Premium Motor Spirit, popularly known as petrol, above a certain regulated price.
