FG spent N5trn on fuel subsidy

chika ebuzor 04:34 - 21 August 2015

This was made known to energy correspondents by the Group Managing Director of NNPC, Emmanuel Ibe Kachikwu who spoke through a representative.

The Nigerian National Petroleum Corporation (NNPC) revealed that the Federal Government of Nigeria spent N5trillion between 2006 and 2012 on fuel subsidy.

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This was made known to energy correspondents by the Group Managing Director of NNPC, Emmanuel Ibe Kachikwu who spoke through a representative.

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According to Sun Newspapers, the NNPC boss said “that over N5 trillion has been expended on fuel subsidy between 2006 and 2012, a development which makes the fuel subsidy regime unsustainable.”

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“Subsidy creates distortions in government revenue distribution as a result of round tripping and unnecessary carry over of expenditures every year in a way that is difficult for government to control or sustain,” Kachikwu said.