FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL - Politics

FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL - Politics - Nairaland

Nairaland Forum › Nairaland General › Politics › FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL (5457 Views)

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FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL by Racoon(op): 6:08am On Mar 05, 2025

Nigerian Government Confirms Plan To Pay N7.7trillion Fuel Subsidy Debts To NNPCL

The debt, which accumulated as an exchange rate differential for the importation of Premium Motor Spirit (PMS), spans from June 2023 to September 2024, when the country fully implemented the deregulation of the downstream oil sector.

The Nigerian government has confirmed its plan to settle a fuel subsidy debt of N7.74trillion owed to the Nigerian National Petroleum Company Limited (NNPCL).

The debt, which accumulated as an exchange rate differential for the importation of Premium Motor Spirit (PMS), spans from June 2023 to September 2024, when the country fully implemented the deregulation of the downstream oil sector.

The figure was disclosed in a document presented by the NNPCL to the Federation Account Allocation Committee (FAAC) during its February meeting in Abuja, PUNCH reports.
The government has outlined a plan to clear the outstanding subsidy within 210 days, according to the document obtained by our correspondent.

The report revealed that the subsidy debt initially stood at N10.499 trillion, but N2.756 trillion was recovered between November 2023 and September 2024, bringing the balance to N7.74 trillion.

A month-by-month breakdown showed how the debt steadily increased: June 2023 – N1.402 trillion; July 2023 – N1.48 trillion; October 2023 – N1.81 trillion; March 2024 – N4.68 trillion; June 2024 – N6.97 trillion, and September 2024 – N7.74 trillion. The subsidy amount represents 14.07% of Nigeria’s N54.99 trillion 2025 national budget.

In August 2024, it was reported that the NNPCL requested a refund of N4.71 trillion from the government for petrol imports.
At the time, this was listed under “Exchange rate differential on PMS and other joint venture taxes.”

Exchange rate differentials occur when there is a change in the value of a currency over time, affecting the cost of transactions. In this case, the government covered the difference between the official exchange rate and the actual cost incurred by NNPCL in importing petrol.

Despite President Bola Tinubu’s declaration in May 2023 that the fuel subsidy had been removed, reports from the International Monetary Fund (IMF) and World Bank suggest that the subsidy was quietly reintroduced through price stabilization measures

Energy expert Wumi Iledare questioned the rationale behind the government reimbursing NNPCL, given that the company sells crude oil in foreign currency on the government’s behalf.

“If NNPCL sells oil on behalf of the government and gives it the dollar revenue, why should the government pay back any money? NNPCL should be remitting funds like other oil companies,” Iledare argued. [b]Furthermore, members of the FAAC committee have raised concerns about inconsistencies in NNPCL’s revenue reporting.

Ogun State Accountant-General, Tunde Aregbesola, noted a significant drop in revenue remitted by NNPCL compared to previous months, citing an outstanding balance of N10.8 trillion in receivables.

FAAC Chairperson Oluwatoyin Madein assured that an alignment committee is currently reviewing the figures to ensure proper reconciliation. The government has committed to settling the N7.74 trillion debt within 210 days, but concerns remain over Nigeria’s ability to sustain its current economic policies without further subsidy-related liabilities.

With rising inflation and fluctuating foreign exchange rates, economic experts warn that the government must implement more sustainable measures to prevent a recurrence of subsidy debt accumulation in the future.

https://saharareporters.com/2025/03/04/nigerian-government-confirms-plan-pay-n77trillion-fuel-subsidy-debts-nnpcl#google_vignette

Re: FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL by Racoon(op): 6:09am On Mar 05, 2025*

Despite President Bola Tinubu’s declaration in May 2023 that the fuel subsidy had been removed, reports from the International Monetary Fund (IMF) and World Bank suggest that the subsidy was quietly reintroduced through price stabilization measures.

A month-by-month breakdown showed how the debt steadily increased:
-June 2023; N1.402 trillion.
-July 2023; N1.48 trillion.
-October 2023; N1.81 trillion.
-March 2024; N4.68 trillion
-June 2024; N6.97 trillion
-September 2024; N7.74 trillion.

The subsidy amount represents 14.07% of Nigeria’s N54.99 trillion 2025 national budget.

Lies and propaganda is not and never a good way to run a government. But what does a nation expects when untruthful people forced their ways into position of authority.

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Re: FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL by Racoon(op): 6:17am On Mar 05, 2025

Playing the subsidy games and using the dollar to shove up the naira are among the many economically unfeasible policies of this rudderless lying govt that are plaguing this nation

30 Likes 5 Shares

Re: FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL by helinues: 6:27am On Mar 05, 2025

Toh

Re: FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL by Gandollar(f): 6:52am On Mar 05, 2025

From one policy summersault to another.

I guess the money would come from the billions saved after allegedlyremoving fuel subsidy.

12 Likes

Re: FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL by CodeTemplar: 7:03am On Mar 05, 2025

OandO and co??

5 Likes

Re: FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL by tiswell(m): 7:35am On Mar 05, 2025

FG and audio doings are like Siamese twins sad

12 Likes 3 Shares

Re: FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL by PheelzAlmighty: 7:35am On Mar 05, 2025

Re: FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL by cjudy(m): 7:36am On Mar 05, 2025

Lamba

3 Likes

Re: FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL by imbless: 7:38am On Mar 05, 2025*

Can someone tell me 1 Tinubu's economic policy that isn't counterproductive?

I need just 1!! cry

How much in total did the inept bubu regime spend on subsidy from 2015 to 2022 compared to the 7.7 -10 trillion T-pain wants to pay for just 2023?
Tpain renamed it from fuel subsidy to exchange rate differential grin

just negodu the jargon.

Subsidy is gone is different from subsidy will be going gradually.

The conclusion of Tinubu's major economic policy is that he removed fuel subsidy and floated (devalue) naira by 100%, yet still pay 7 -10Trillion for fuel subsidy in form of exchange rate differential, because of the negative effects of floating (devaluing) naira had on the importation of fuel and yet him and the Mr Cardi B of CBN and the big head of a finance minister is using our FX reserves to defend the naira they devalued grin

thereby depleting our reserves and thereby destroying Nigeria's chance of economic recovery yet telling Nigeria to suffer for a while undecided

Nigerians go suffer tire should this economic rape continue.
In a nutshell this is a true definition of counterproductive economic policies grin

Note: I used devalued naira and float naira because naira was devalued for more than 100% as a result to the floating.

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Re: FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL by cjudy(m): 7:38am On Mar 05, 2025

helinues:
Toh

Zone B

8 Likes 1 Share

Re: FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL by MrSundry: 7:40am On Mar 05, 2025

If you like spell "Mallam" backward or forward na still "Mallam" you go get. From subsidy to under-recovery to Fx differential.

The fact is subsidy is still being paid on PMS despite all the grammar and change in terminology.

16 Likes 1 Share

Re: FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL by Pipefitter: 7:40am On Mar 05, 2025

I don't know how any sane person will support Tinubus govt, previous govt maintained pms price at 180 naira per liter comfortably till this new government took over, on the day of his inauguration he announced subsidy was gone without consulting stake holders and within 2 days of his government pms Price soared to 600/liter against the 180.

I wouldn't have any issues if subsidy was actually removed to help government save but what I don't understand is why will he go back and start paying 3X of what other government paid as subsidy yet fuel is 960 here...

He should accept the fact he has failed Nigerians and has no clue what he's doing...

My point has nothing to do with his tribe, I'm just a concerned Nigerian. Thank you

20 Likes 2 Shares

Re: FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL by uchwar1: 7:41am On Mar 05, 2025

Re: FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL by kgr8mike(m): 7:43am On Mar 05, 2025

Comrades, it's finished

2 Likes

Re: FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL by PandoraObi: 7:44am On Mar 05, 2025

Re: FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL by Gadafii: 7:46am On Mar 05, 2025

But subsidy was removed 2years ago by bulaba, and swore the era was gone and done with, so what's this debt they want to pay?

5 Likes

Re: FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL by ogascomax: 7:47am On Mar 05, 2025

Who owns NNPC. This is still a mystery. How can Federal Govt be paying it's agency a loan that belongs to the same Federal Govt.

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Re: FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL by tetralogyfallot(m): 7:50am On Mar 05, 2025

I thought subsidy regime is gone.

Re: FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL by Houseofglam7(f): 7:57am On Mar 05, 2025

🥱

Re: FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL by MrPresident1: 7:58am On Mar 05, 2025

Just share the money to Nigerians na? Are we not the owners of NNPCL?

Give us our own owo Udoji

Re: FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL by HeavenShield(m): 8:04am On Mar 05, 2025

No problem. You people can do whatsoever you like in this country, cook up figures, steal, rob with biro but one day, it will be like Moses leading the children of Isreal out of Egypt and that day will surely come...

It will surely come, oppression can't be sustained. The walls will fall.

Ask some countries of our world, ask Syria.

4 Likes

Re: FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL by free2ryhme: 8:07am On Mar 05, 2025

Racoon:
Nigerian Government Confirms Plan To Pay N7.7trillion Fuel Subsidy Debts To NNPCL

https://saharareporters.com/2025/03/04/nigerian-government-confirms-plan-pay-n77trillion-fuel-subsidy-debts-nnpcl#google_vignette

Re: FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL by Wimkeh(m): 8:08am On Mar 05, 2025

what I'd like to understand is, despite the Naira gaining value since December, how come there's no tangible change the price of goods and services since then? How come the naira is not really getting strong, except on paper?

I know you might say "but fuel prices are high"

No, they've been going down too. How come nothing is responding to this reduction in price?

What is really happening?

5 Likes

Re: FG Confirms Plan To Pay ₦‎7.7 Trillion Fuel Subsidy Debts To NNPCL by Treadway: 8:17am On Mar 05, 2025

Chai how will grandstar and ninjametahuman defend/explain this subsidy/under-recovery/exchange rate differential/intervention/any other adjective dem don use so far wey I don forget.

What a significant progress and savings💯👏🏼💯

Just like allocation that quadrupled in volume yet more than halved in actual value/worth.

The more you look, the less you see, As ALWAYS.

Lmao

2 Likes 1 Share