NNPC requests N3tr for fuel subsidy for 2022

Minister of Finance says the NNPC request was considered by the Federal Executive Council.

Group Managing Director of the NNPC, Mele Kyari (Nairametrics)

Following the suspension of the planned fuel subsidy removal, the Nigerian National Petroleum Corporation (NNPC) has requested the sum of three trillion naira (N3,000,000,000,000) as fuel subsidy for 2022.

Minister of Finance, Budget, and National Planning, Mrs. Zainab Ahmed, made this known while addressing journalists after the Federal Executive Council meeting on Wednesday, January 26, 2022.

Ahmed said, “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.”

According to the minister, the Federal Government currently spends about N270 billion per month on fuel subsidy, adding that the FG would have to make an incremental provision of N2.557 trillion to meet subsidy requirements for the year.

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

The minister also explained that the current realities on the ground including lack of structures necessitated the NNPC to make the request.

Ahmed, however, revealed that the NNPC request was considered by the council.

She added that the council has directed her ministry to approach the National Assembly for an amendment to the fiscal framework as well as the budget.

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