₦airaland Forum

This development comes despite the President Bola Tinubu-led Nigerian government’s repeated claims that it has stopped subsidising the cost of petroleum in the country.


A SaharaReporters' review of the Nigerian National Petroleum Company Limited (NNPCL) financial statement for the year ended December 2024 has shown that a sum of N7.1 trillion was said to have been spent on fuel subsidy to defray energy costs.

The expense was tagged "energy security expense" in the financial report.

According to the document, the energy security expense occurs "when there is differential between exchange rate used to freeze the Premium Motor Spirit ex-coastal price and the prevailing exchange rate at point of import settlement."



"The amount is charged against what should have been paid to the federation accounts monthly."


A sum of N4.8trillion was recorded to have been spent on the same item in 2023.

This development comes despite the President Bola Tinubu-led Nigerian government’s repeated claims that it has stopped subsidising the cost of petroleum in the country.

Data by the Nigeria Extractive Industry Transparency Initiative (NEITI) shows that the highest amount spent on subsidy by the Nigerian government between 2005 and 2021 was incurred in 2011, when a sum of N2.1 trillion was paid.

In 2022, however, the Nigerian government paid N3.36 trillion as fuel subsidies, meaning that between 2005 and 2022, the highest subsidy paid stood at N3.36 trillion. With N4.8 trillion spent in 2023, the N7.1 trillion recorded for 2024 becomes the highest ever spent between 2005 and 2024, a twenty-year period.

Upon assuming office on May 29, 2023, President Bola Tinubu announced the removal of subsidy, citing the need to stop wastage in governance and increase revenue for development.

It remains unclear why the government incurred even higher subsidy-related expenses after the announced removal.

https://saharareporters.com/2025/11/25/nnpc-report-shows-tinubu-government-spent-n71trillion-subsidies-2024-captured-energy

Even the most developed countries subsidize energy. Its a necessary evil.

We still dey pay subsidy despite say we don remove am?

treesun:
This development comes despite the President Bola Tinubu-led Nigerian government’s repeated claims that it has stopped subsidising the cost of petroleum in the country.


A SaharaReporters' review of the Nigerian National Petroleum Company Limited (NNPCL) financial statement for the year ended December 2024 has shown that a sum of N7.1 trillion was said to have been spent on fuel subsidy to defray energy costs.

The expense was tagged "energy security expense" in the financial report.

According to the document, the energy security expense occurs "when there is differential between exchange rate used to freeze the Premium Motor Spirit ex-coastal price and the prevailing exchange rate at point of import settlement."



"The amount is charged against what should have been paid to the federation accounts monthly."


A sum of N4.8trillion was recorded to have been spent on the same item in 2023.

This development comes despite the President Bola Tinubu-led Nigerian government’s repeated claims that it has stopped subsidising the cost of petroleum in the country.

Data by the Nigeria Extractive Industry Transparency Initiative (NEITI) shows that the highest amount spent on subsidy by the Nigerian government between 2005 and 2021 was incurred in 2011, when a sum of N2.1 trillion was paid.

In 2022, however, the Nigerian government paid N3.36 trillion as fuel subsidies, meaning that between 2005 and 2022, the highest subsidy paid stood at N3.36 trillion. With N4.8 trillion spent in 2023, the N7.1 trillion recorded for 2024 becomes the highest ever spent between 2005 and 2024, a twenty-year period.

Upon assuming office on May 29, 2023, President Bola Tinubu announced the removal of subsidy, citing the need to stop wastage in governance and increase revenue for development.

It remains unclear why the government incurred even higher subsidy-related expenses after the announced removal.

https://saharareporters.com/2025/11/25/nnpc-report-shows-tinubu-government-spent-n71trillion-subsidies-2024-captured-energy

Nigeria was already owing subsidy claims to nnpc , I believe this are just settlement for past claims , same way nigeria is owing gencos 4 trillion naira subsidy for electricity.

Toh

What's the source of this data?

How could they have spent so much on subsidizing the same fuel we paid so much for in filling our cars.

Why were we subsidizing to such magnitude even when Dangote had come on stream with reduced refined petroleum import?

I can not comprehend what nnpc Ltd cooked up in that report!

This is very misleading. If the subsidy is gone, how can you spend on what is no longer there? This is a mere accounting principle that will balance out in the long run.

I have been vindicated !!!! I said it here numerously that there is no way Tinubu is not paying subsidy to the importation cartel.. Tinubu si a very wickee human being .

This man wrecked our economy with fake subsidy removal that caused 100 percent Devaluation of the Naira , wiped out 200 billion dollars from the GDP , sent many into untold hardship only for us to find out he has secretly been paying even more subsidy...

This is a crime against all Nigerians and Tinubu deserves to be impeached if this is a working country

odejimioflagos:
This is very misleading. If the subsidy is gone, how can you spend on what is no longer there? This is a mere accounting principle that will balance out in the long run.

You are shameless

matify83:
How could they have spent so much on subsidizing the same fuel we paid so much for in filling our cars.

Why were we subsidizing to such magnitude even when Dangote had come on stream with reduced refined petroleum import?

I can not comprehend what nnpc Ltd cooked up in that report!

The problem with many of you Nigerians is that you live in denial too long ..only a clown will believe that Tinubu removed subsidy

ImIfeyinwaWj:
Even the most developed countries subsidize energy. Its a necessary evil.

Are you okay ...after wrecking our economy?

ebukal67x:
We still dey pay subsidy despite say we don remove am?

It was never removed , I raised an alarm here then ,it was removed for just a month or so by the time the devaluation hit they started paying it quietly

The subsidy removal is a work in progress. Things will improve.

Even at 1k per litre last year, baba still paid 7 trillion. Ha, tinubu fear God o

Where subsidy was self-implemented by the NNPCL, its also self-exiting now.

Fuel subsidy is still being paid. Tinubu led-APC government is still a shadow of its old self; lying, deceptive, propaganda in nature.

ebukal67x:
We still dey pay subsidy despite say we don remove am?

Seems it was never stopped. Just diverted

Without subsidy, petrol will be N1500. Look at the cost of petrol in the international market and you'll know the Tinubu govt has been lying since 2023

ebukal67x:
We still dey pay subsidy despite say we don remove am?

Nigeria is paying subsidy. How much is petrol in the international market? About $1, now convert to naira.

Who pays the difference?

benardtotti:
Nigeria was already owing subsidy claims to nnpc , I believe this are just settlement for past claims , same way nigeria is owing gencos 4 trillion naira subsidy for electricity.

I said the same thing and thats why Tinubu keeps borrowing.

Petrol in the international market is $1, so who pays the difference? Definitely Tinubu

FarahAideed:
It was never removed , I raised an alarm here then ,it was removed for just a month or so by the time the devaluation hit they started paying it quietly

The propaganda administration will deny spending a dime

DMerciful:
Nigeria is paying subsidy. How much is petrol in the international market? About $1, now convert to naira.

Who pays the difference?

Nigeria is not importing fuel , except you are claiming dangote should stert charging international rate for petrol ? Also don't forget that government is not paying private marketers to import anymore, reason they wanted to impose 15% duty on fuel imports to discourage it.

It's simple logic ,if indeed nigeria is paying subsidy you think dangote won't cry out ?

If the fg has opportunity to sell crude at international price but decides to sell low to Dangote so that Dangote sell petrol for half the international price to Nigerians, is that not subsidy?

If a farmer sells rice to his neighbors for half the price, even if he is the one producing the rice, he is paying subsidy in form of lost revenue

benardtotti:
Nigeria is not importing fuel , except you are claiming dangote should stert charging international rate for petrol ? Also don't forget that government is not paying private marketers to import anymore, reason they wanted to impose 15% duty on fuel imports to discourage it.

It's simple logic ,if indeed nigeria is paying subsidy you think dangote won't cry out ?

DMerciful:
If the fg has opportunity to sell crude at international price but decides to sell low to Dangote so that Dangote sell petrol for half the international price to Nigerians, is that not subsidy?

If a farmer sells rice to his neighbors for half the price, even if he is the one producing the rice, he is paying subsidy in form of lost revenue

Oga , the report said nnpc paid subsidy claims , you don't pay subsidy claims for something you produce and give another partner to process for you sir, so according to your logic who exactly did nnpc pay the claims to cos we all know they are no longer paying fuel marketers d they couldn't have paid the claims to dangote cos he is already getting crude oil and pays for it in naira .

If you produce rice let's say 1000 bags and decide you will export 500 bags in dollars and sell the rest 500 bags in naira to the local market at discounted offer how then will you loose?

Cos both ways you are getting paid all you need is to balance the books , why will you now pay subsidy ?

Its a simple logic oga. Petrol is sold at N1600 at the international market, Nigerians are buying at N800+, someone is paying subsidy and its definitely fg.

Lets not eat yams as if they contain bones

benardtotti:
Oga , the report said nnpc paid subsidy claims , you don't pay subsidy claims for something you produce and give another partner to process for you sir, so according to your logic who exactly did nnpc pay the claims to cos we all know they are no longer paying fuel marketers d they couldn't have paid the claims to dangote cos he is already getting crude oil and pays for it in naira .

If you produce rice let's say 1000 bags and decide you will export 500 bags in dollars and sell the rest 500 bags in naira to the local market at discounted offer how then will you loose?

Cos both ways you are getting paid all you need is to balance the books , why will you now pay subsidy ?

DMerciful:
Its a simple logic oga. Petrol is sold at N1600 at the international market, Nigerians are buying at N800+, someone is paying subsidy and its definitely fg.

Lets not eat yams as if they contain bones

I ask again are you importing the petrol or producing it locally? Cos don't understand why you keep trying to tell us petrol is 1600 according to international price when the crux of the matter is the current bulk over 60 percent of your fuel is produced locally .

Whether you produce locally or not, intentional loss of revenue is subsidy

benardtotti:
I ask again are you importing the petrol or producing it locally? Cos don't understand why you keep trying to tell us petrol is 1600 according to international price when the crux of the matter is the current bulk over 60 percent of your fuel is produced locally .

This is not subsidy but energy security expense.

Anither563:
This is not subsidy but energy security expense.

Just like it was called under recovery under Buhari ..let's keep deceiving ourselves okay

odejimioflagos:
This is very misleading. If the subsidy is gone, how can you spend on what is no longer there? This is a mere accounting principle that will balance out in the long run.

Anybody still supporting APC is a f@@l