Nigeria Potentially Paying N600 Billion Monthly for Fuel Subsidy Despite Official Removal – Rainoil CEO.
Ogbechie made this assertion during a breakfast session on energy and infrastructure held in Lagos. His remarks come amid ongoing debate about whether the subsidy, officially removed in May 2023, has actually been reinstated.
“Since the removal of the subsidy, prices have been high. But if you look at it critically, the Federal Government is still subsiding,” Ogbechie said.
He points to the depreciation of the Naira as a key factor in the subsidy’s return. “With the depreciation of the Naira, the subsidy is back. You have a subsidy of about N400 to N500 per litre.”
“The government is still paying that subsidy through the NNPC,” Ogbechie added.
Ogbechie further suggests that the state-owned NNPC‘s role as the sole importer of petrol indicates an ongoing subsidy. “If the government decides to give us transparency, then we can understand,” he said.
In response, the federal government has maintained that the subsidy was removed, but has also acknowledged the right to intervene intermittently to stabilize prices.
“Since the subsidy was removed, we have been paying the full cost of landing,” the federal government stated.
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The Nigerian National Petroleum Corporation (NNPC) has consistently denied receiving any subsidy payments from the government since May 2023. NNPC claims it is only recovering the cost of imported fuel.
The conflicting information from industry leaders, government officials, and NNPC leaves the true status of the fuel subsidy unclear, creating uncertainty for businesses and Nigerians alike.
