Petrol subsidy is back as Federal Government spends N169 billion in August

Despite the several declarations by President Bola Tinubu that “subsidy is gone”, reports have shown that subsidy is back.

Findings by the Daily Trust shows that the federal government paid 169.4 billion naira as subsidy in August to keep the pump price at 620 naira per litre.

According to reports, the subsidy was paid to maintain current price level, in the face of a worsening exchange rate and sharp hike in the international crude price which has crossed $95 a barrel.

The subsidy claims was established in a document by the Federal Account Allocation Committee (FAAC), which showed that in August 2023, the Nigerian Liquefied Natural Gas (NLNG) paid $275m as dividends to Nigeria via NNPC Limited, of which NNPC used $220m to pay for the petrol subsidy.