Amount spent on subsidy now above N400bn monthly says NNPCL
The Nigerian National Petroleum Company Limited revealed on Friday that the amount spent as a subsidy on Premium Motor Spirit, also known as petrol, had surpassed N400 billion per month.
Mele Kyari, Group Chief Executive Officer of NNPCL, disclosed this at the oil firm's headquarters during the ongoing Final Cutover to NNPC Limited from being a corporation.
Kyari stated that the oil company spent approximately N202 as a subsidy on every litre of petrol consumed across the country, emphasizing that NNPCL pumped approximately 65 million litres of PMS into the market daily.
Although he stated that the oil company would continue to meet its obligations by providing PMS for Nigeria, Kyari stated that the NNPCL's cash flow had been severely strained by the N400 billion monthly subsidy.
NNPCL is Nigeria's sole importer of petrol, a role it has held for several years while bearing the enormous cost of fuel subsidies.
Other private oil marketers stopped importing petrol into Nigeria due to difficulties in obtaining US dollars, which are required for PMS imports.
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