Mrs. Zainab Ahmed, Honourable Minister for Finance, Budget and National Planning

Why Nigeria projects N3trn as fuel subsidy bill for 2022 ─Minister

*The Federal Government of Nigeria says it will make an incremental provision of N2.557trillion to meet subsidy requirements currently averaging about N270billion per month, following increasing crude oil price in the global market and assessed daily fuel consumption in the country

Gbenga Kayode | ConsumerConnect

Sequel to the increasing crude oil price per barrel in the international market, and the oil firm’s recent field assessment that Nigerians consume 65.7million litres of fuel daily, the Nigerian National Petroleum Company (NNPC) Limited has requested N3trillion form the Federal Government as fuel subsidy for 2022.

Mrs. Zainab Ahmed, Honourable Minister for Finance, Budget and National Planning, disclosed this development to State House correspondents after the Federal Executive Council (FEC) meeting, chaired by President Muhammadu Buhari Wednesday, January 26, 2022, in the Presidential Villa, Abuja, FCT.

ConsumerConnect reports the crude price in the global oil market tops $90 per barrel as of Wednesday, January 26, for the first time since 2014.

Mrs. Ahmed said: “In 2022, because of the increased crude oil price per barrel in the global market, now at $80 per barrel, and also because NNPC’s assessment is that the country is consuming 65.7 million litres per day, that we would end up with an incremental cost of N3 trillion in 2022.”

The Minister noted that by inference, the Federal Government will have to make an incremental provision of N2.557trillion in order to meet subsidy requirements which currently averages about N270billion per month.

She also disclosed only N443billion is currently available in the 2022 Federal Budget meant to accommodate subsidy from January to June this year.

According to the Minister, the current realities on the ground including lack of structures, for now, have necessitated the NNPC Limited to make the request from rge government.

Subsequently, Mrs. Ahmed said the FEC had considered the company’s request, and it directed the Ministry of Finance, Budget and National Planning to approach the National Assembly (NASS), in Abuja, for an amendment to the fiscal framework and the budget.

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