Tinubu’s Administration Spends N15.096 Trillion on Petrol Subsidy in 14 Months

By Miracle Esegha

President Bola Tinubu’s administration has spent N15.096 trillion on petrol subsidy in the last 14 months, according to calculations by BusinessDay. This amount surpasses the N10.7 trillion spent on petrol subsidies by former President Muhammadu Buhari between 2016 and the first six months of 2023.

The calculations were based on data from the National Bureau of Statistics and information from petroleum marketers. The average monthly petrol consumption in Nigeria is 1.95 billion liters, with a total of 27.3 billion liters consumed in 14 months.

The landing cost of petrol and logistics costs stand at N1,203 per liter, while NNPC Retail sells petrol at N650 per liter, resulting in a differential of N553 per liter. This differential, combined with the total liters consumed, amounts to N15.097 trillion.

Analysts attribute the increased subsidy expenditure to the naira’s slump after foreign exchange liberalization in 2023, which has lost over 60% of its value since then. The government’s recognition of the subsidy’s return and its increased amount has led to measures such as utilizing dividends due to the federation to pay for petrol subsidy and suspending payment of interim dividends to augment NNPC’s cash flow.