Recent revelations have shed light on the fuel subsidy situation in Nigeria, with President Bola Tinubu's administration secretly paying billions in monthly fuel subsidies.
This comes after the initial removal of the subsidy by President Tinubu, which has been a contentious issue.
According to former governor of Kaduna State and a key figure in the All Progressive Congress (APC), Nasir El-Rufai, the government has indeed reinstated the fuel subsidy, albeit in a more adjusted form.
He confirmed this to newsmen in Maiduguri, Borno State capital, on Monday, April 15, 2024.
Furthermore, Gabriel Ogbechie, the CEO of Rainoil, revealed that Nigeria's daily fuel consumption is 40 million litres, and with a foreign exchange rate of ₦1,300, the government is paying a subsidy of ₦400 to ₦500 per litre of fuel. This amounts to a staggering monthly expenditure of ₦600 billion.
Speaking at the Stanbic IBTC Energy and Infrastructure Breakfast Session in Lagos, Ogbechie highlighted the significant cost implications of the subsidy, stating, "If you look at our daily consumption, say 40 million litres, and we're spending N500 per litre, that is about N20 billion every day, N600 billion every month and 7.2 trillion yearly depending on how we look at it. So, the subsidy is definitely back on petrol."
This development has sparked further debate on the fuel subsidy in Nigeria, as the Tinubu administration continues to navigate the complexities of the country's economy and energy sector.
