Nigeria spent N1.59 trillion ($3.83 billion) on gasoline subsidies within the first half of the 12 months and accrued a $1.2 billion funding shortfall for oil and pure fuel tasks, a report by the Nigerian Nationwide Petroleum Cooperation (NNPC) confirmed final week.
The report, which was introduced to the Federation Accounts Allocation Committee (FAAC) early final week and seen by Reuters, underscores Nigeria’s budgetary hassle from spiralling gasoline prices and restricted oil manufacturing.
The doc confirmed that because of rising subsidy prices, NNPC had not remitted cash to federal accounts all 12 months.
Final 12 months, Nigeria was spending about N100 billion per 30 days on gasoline subsidies.
NNPC didn’t instantly reply to a request for remark.
Nigeria, Africa’s greatest oil producer, delayed eliminating gasoline subsidies in January amid rising inflation within the run-up to subsequent 12 months’s presidential election.
The nation imports all of its refined merchandise as a result of native refineries have been mothballed for years.
In April, President Muhammadu Buhari requested an extra N4 trillion to cowl subsidies because of increased gasoline costs following Russia’s invasion of Ukraine. That cash is supposed to final till the top of his administration in late Could.
Nigeria’s oil manufacturing, which generally supplies half of presidency income and greater than 90 per cent of its international alternate, has faltered prior to now two years because of low funding and theft from pipelines.