FG: Nigeria spent N13trn on petrol subsidy in 16 years

The Federal Government has disclosed that Nigeria spent over N13 trillion on Premium Motor Spirit (PMS), otherwise known as petrol, subsidy in 16 years.

The Secretary to the Government of the Federation (SGF), Boss Mustapha, made the disclosure at the launch of the Nigerian Extractive Industries Transparency Initiative (NEITI) 2022 – 2026 Strategic Plan in Abuja on Monday, May 15.

Mustapha, who said the Presidential Transition Council (PTC) would release the guide that emanated from the discussions on petrol subsidy to the incoming administration, noted that from the Policy Advisory, “over N13 trillion is documented to have been expended on the payment of subsidy between 2005-2021,” he said.

The SGF said the Federal Government has been keenly following subsidy conversations having borne the burden of fuel subsidy over the years, adding: “While we remain open to the ongoing debate, a comprehensive position to guide the incoming administration on when and how to make this decision is being developed by the Presidential Transition Council which I currently head.”

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Mustapha said the N13 trillion figure in relative terms is equivalent to Nigeria’s entire budget for health, education, agriculture, and defence in the last five years, adding that it was almost the capital expenditure for 10 years between 2011 and 2020 if the government computed in financial terms other economic and opportunity costs to the country.

The SGF said the government had also noted other debates around the subsidy removal, including the need to fix national refineries and the creation of visible safety net programmes to reduce the impact on the poor and vulnerable, especially workers.

He stated that adequate mechanisms would be put in place to ensure that the revenues that would accrue from subsidy removal are prudently managed and channelled to the development of key infrastructure and other areas of national development

Mustapha, therefore, expressed confidence that the incoming administration will consider “our position on the issue and make an informed decision in the overriding public interest”.

The Star