The Nigerian National Petroleum Corporation says the sum of three trillion naira (N3,000,000,000,000) will be required to sustain the provision of petrol subsidy for 2022.
Minister of Finance, Budget, and National Planning, Mrs. Zainab Ahmed, disclosed this to State House correspondents after the Federal Executive Council meeting which was chaired by President Muhammadu Buhari on Wednesday.
“In 2022, because of the increased crude oil price per barrel in the global market, now at $80 per barrel, and also because NNPC’s assessment is that Nigeria is consuming 65.7 million litres per day, that we would end up with an incremental cost of N3 trillion in 2022,” the minister added.
According to her, by implication, the Federal Government will have to make an incremental provision of N2.557 trillion in order to meet subsidy requirements which currently average about N270 billion per month.
The finance minister further disclosed that only N443 billion is presently available in the 2022 budget meant to accommodate subsidy from January to June.
She also stated that the current realities on the ground including lack of structures, has necessitated the NNPC to make the request.
That request, she revealed, was considered by the council, which has directed the ministry to approach the National Assembly for an amendment to the fiscal framework as well as the budget.
The government had earlier in the week rescinded a proposal to end subsidy payment on petrol in July this year as recommended by the Petroleum Industry Act (PIA).