FG to spend N3 trillion a year on petrol subsidy

The Federal Government has disclosed that it will cost N3 trillion to fund a petrol subsidy this year at N270 billion per month.

This estimate is based on the projection submitted by the Nigerian National Petroleum Company (NNPC) Limited after the government announced a suspension of the petrol subsidy removal plan.

Finance, Budget and National Planning Minister, Zainab Ahmed, said N443 billion was budgeted for a subsidy from January to June.

She added that this will have to be increased and sourced.

The minister spoke with reporters at the State House after the week’s Federal Executive Council (FEC) meeting at the Presidential Villa, Abuja.

Recall that the Federal Government on Monday put subsidy removal on hold to allow for relief measures. It said it would provide for subsidy payment beyond June.

Ahmed said FEC approved a proposed amendment to the 2022 Budget to accommodate the additional subsidy funding.

According to her, the council proposed a year-long provision for subsidy, taking into consideration the prevailing economic realities.



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