Revealed: Subsidy Amount Paid by FG for Petrol in 8 Nigerian Cities Despite Denials (Full List)

Contrary to repeated government denials, new data reveals that the Nigerian government is subsidizing petrol at an average rate of N501.47 per litre in at least eight major cities. This disclosure comes from a review of Premium Motor Spirit (PMS) pricing data as of August 21, 2024.

Despite President Bola Tinubu’s May 2023 announcement of subsidy removal—intended to ease the government’s financial burden—the price of fuel surged from N197 to between N480 and N570 per litre, causing widespread increases in transportation fares and goods.

The government’s subsidy removal led to a price hike to N617 per litre at Nigerian National Petroleum Company Limited (NNPC Ltd) outlets in July 2023. Recently, there have been unconfirmed reports of a covert reintroduction of the subsidy to stabilize the pump price amid a declining naira and rising crude oil costs.

The newly obtained data highlights significant discrepancies between indicative and actual pump prices across several cities:

• Lagos: Indicative price of N1,067.24 vs. actual price of N568, subsidy of N499.24
• Abuja: Indicative price of N1,105.04 vs. actual price of N617, subsidy of N488.04
• Kano: Indicative price of N1,116.34 vs. actual price of N620, subsidy of N496.34
• Calabar: Indicative price of N1,081.18 vs. actual price of N591, subsidy of N490.18
• Sokoto: Indicative price of N1,121.75 vs. actual price of N620, subsidy of N501.75
• Maiduguri: Indicative price of N1,135.42 vs. actual price of N637, subsidy of N498.42
• Ibadan: Indicative price of N1,075.30 vs. actual price of N580, subsidy of N495.30
• Enugu: Indicative price of N1,142.49 vs. actual price of N600, subsidy of N542.49

Former Kaduna State Governor Nasir El-Rufai previously suggested that implicit subsidies persist despite official denials. The Minister of Budget and Economic Planning, Atiku Bagudu, has insisted that subsidies have been eliminated, citing the Petroleum Industry Act and government policy.

Contradicting this stance, the International Monetary Fund (IMF) reported the reintroduction of subsidies, estimating they will cost nearly N8.43 trillion of Nigeria’s projected N17.7 trillion oil revenue this year.

Additionally, a draft Accelerated Stabilisation and Advancement Plan (ASAP) revealed a projected N5.4 trillion subsidy expenditure for 2024, up from N3.6 trillion in 2023. The recent approval for NNPC Ltd to use 2023 dividends to cover subsidy costs further underscores the ongoing financial strain.

Last week, NNPC Ltd reported a net profit of N3.297 trillion for the 2023 financial year but claimed that the subsidy payments were a “shortfall/FX differential,” not an active subsidy. NNPC’s CFO, Umar Ajiya, denied direct subsidy payments but acknowledged financial pressures.