NewStats: 3,263,464 , 8,180,211 topics. Date: Friday, 06 June 2025 at 03:57 AM 5o4p6l

Nigeria’s petrol subsidy has returned and is now bigger than the amount being paid before President Bola Tinubu stopped the costly practice last May.

BusinessDay’s analysis has revealed that the country is paying about N907.5 billion subsidy on motor spirit (PMS) popularly known as petrol monthly as the country’s foreign exchange crisis pushed the actual cost of litre of fuel to N1,203.

One week before the 2023 presidential election which brought in the new istration, Mele Kyari, the Group CEO of the Nigerian National Petroleum Company (NNPC) Limited, said at the final cutover ceremony of NNPC and the birth of NNPCL at the corporation’s towers in Abuja, that the country is spending over N400 billion monthly on petrol subsidy.

Recent investigations into Nigeria’s petrol pricing dynamics have revealed a significant surge in the landing cost of petrol, attributed to the escalating black-market exchange rate.

According to findings, at the prevailing black-market rate of N1,500 per dollar, the landing cost of petrol has soared to N1,009 per litre, marking a substantial increase from N720 per litre recorded in October 2023.

Till date, the state-owned oil company remains the sole importer of petrol into Nigeria, despite the ing of the Petroleum Industry Act 2021 and the deregulation of the downstream sector, which allows for other private oil marketers who are licensed to import the product into the country.

However, accessing forex required for the importation of the commodity has proved difficult, leading to them depending on the state-owned oil company.

More than 90 licensed marketers, tasked with importing petroleum products into Nigeria, find themselves hamstrung by an unresolved price differential, rendering them unable to bring in any products nearly nine months after President Bola Tinubu announced the deregulation of the downstream segment of the petroleum industry.

Jide Pratt, country manager of TradeGrid, said that marketers need access to forex to import the refined product into the country to change this development.

Nigeria’s cost of living crisis worsens as rice, bread, egg prices surge
According to him, it will be beneficial for all parties if the NNPC stops being the sole importer of petrol into Nigeria.

In his calculations, PMS Eurobob delivered to West Africa was $867.60 per tonne. There are 1000 litres in every tonnes, which brings the landing cost of petrol per litre in Nigeria to $0.87.

“With an exchange rate of N1,555/$, the retail price should be estimated at N1098 per litre,” he said. “Alot needs to be done.”

President Bola Tinubu announced that petrol subsidy is gone in his inauguration speech in May 2023. Prior to this, there was a difference of close to N202 for every litre of PMS imported into this country.

Kyari said in February 2023: “In current data , the landing cost was around N315/litre. Our customers are here, we are transferring to each of them at N113 per litre.

“That means there is a difference of close to N202 for every litre of PMS we import into this country.

“In computation, N202 multiplied by 66.5 million litres, multiplied by 30 will give you over N400 billion of subsidy every month.”

Meanwhile, Eze Odiri, a public sector consultant, said that there is no way Nigeria can earn substantial forex as the NNPCL has already mortgaged future production volumes for upfront cash.

“We don’t earn any forex. Until NNPCL starts giving us dollar revenues, it will keep on going up as our importation is still high,” he said. “Our non-oil exports are still too small. Then our remittances from diaspora are not getting to the CBN.”

https://businessday.ng/energy/oilandgas/article/petrol-subsidy-nears-n1trn-monthly-bigger-than-when-tinubu-came/?amp=1

We are inching towards anarchy.

When is Hadiza Bala submitting the names of non-performing ministers?

Our dependent on oil receipt has undermined development in other sectors of the economy and it's now more imperative that government eases the burden incurred by exporters of agro-produce and even grant tax reprieve to encourage exports.

Funny enough I am seeing the hand of God in this
This is because BAT is just being exposed and disgraced not just as being grossly incompetent,but for being hypocritical because same subsidy he rallied against GEJ,claimed does not exist,but is not only going behind the back to pay,after having stupidly floated the ₦ at the same time,but is now paying at least double what other presidents ever paid.
Who says God doesn't exist indeed!

You can't remove petrol subsidy and devaluation Niara at the same time. That is a bad move.

Let's assume subsidy was remove and naira wasn't devaluated.....Will the situation be as worse as this?

Over to you economist....want to hear your thoughts on this?

Ending the subsidy was the biggest blunder Tinubu committed and floating Naira killed it all.

There's no government in the world that doesn't subsidize energy for their people in one way or the other. From America, China, , , etc. During the energy crisis in UK 2022, UK government used billions of pounds to subsidize energy.

And Nigerian government has in the past kept selling to Nigerians the fallacy that government has no business in doing business instead of them to cub corruption which is the bane of our problem but they kept a blind eyes because they're the biggest beneficiary of corruption.


With the current configuration of Nigeria, mindset and attitude of Nigerians, Nigeria will never work.

Untill we get our priority right, expect more sh*t to happen cos the sh*t is deeply rooted.

REMOVAL OF FUEL SUBSIDY & FLOATING OF NAIRA IS A VERY BIG BLUNDER FROM THIS ISTRATION


THE ISTRATION SUPPOSED TO HAVE WAITED FOR LOCAL REFINERY TO START WORKING BEFORE THE REMOVAL OF SUBSIDY

IF WE AT LEAST GET 70% OF OUR CONSUMPTION LOCALLY & 30% FROM IMPORTED CARGO, PRICE PER LITRE WILL NOT BE THIS HIGH

FLOATING OF NAIRA ON THE OTHER HANDS IS ABOUT TO GROUND THE ECONOMY, NO AMOUNT OF INCREMENT ON MINIMUM WAGE WILL SOLVE THIS PROBLEM

MR PRESIDENT NEEDS TO RECRUIT INTELLIGENT PEOPLE INTI HIS GOVERNMENT & ITS NOT A MUST FOR THEM TO BE A PARTY MEMBER OR EVEN A NIGERIAN

WHAT WE NEDD NOW IS POSITIVE TURN AROUND BECAUSE THE COUNTRY IS GOING DOWN RIGHT NOW

PEOPLE ARE SUFFERING TOO MUCH


IF YOU KNOW THOSE WHO HAVE LOOTED OUR FOREX, GO AFTER THEM & COLLECT OUR MONEY BACK FROM THEM, NO NEED TO MENTION THEIR NAMES

He had a first class in ing, he worked at Deloitte and he trained for 20 years to be president.

Hmmm

We are still talking about Petro subsidy? This country don finish..

I built Lagos, . Can't build anymore.

No wonder there's scarcity everywhere.

If thiefnibuus inglorious reign doesn't end ethno religious politics in Nigeria, then nothing will

Nigeria is huge crime scene and the politicians plus the govt workers are the main criminals

What kind of rubbish did I just read? Meaning all the suffering people went through and are still going through was for nothing?
Nigerians need to take matters into their own hands because this is totally unacceptable! If Bola is a man that is honourable, he would just resign. But is he?

EMILOKAN
We've hit the ground running mtchwww, now there isn't any ground again we've all gone underground.



Ebin Pawa ooo

E lo f'ọkan balẹ

Is like Tinubu ers are on holiday.

Tinubu has zero ideas on how to stabilize our economy. The best he can do at this point is to it that the job is bigger than him and resign honourably.

Shiiiiiiiiiiiiiid

Cement don cost wetin the builder of Lagos fit purchase

.

"we will teach Peter obi a political lesson"

Hunger is now teaching them a reality lesson.

Seems Lagos builder is a calamity to Nigeria 😂

APC giving us the worse of the worse

Hmmm

maybe removing subsidies and floating the exchange rate at the same time is unsustainable for Nigeria

Tinubu should have just removed the subsidy but leave naira for some time to watch the economic reaction to the subsidy removal

seborrhic:

Funny enough I am seeing the hand of God in this
This is because BAT is just being exposed and disgraced not just as being grossly incompetent,but for being hypocritical because same subsidy he rallied against GEJ,claimed does not exist,but is not only going behind the back to pay,after having stupidly floated the ₦ at the same time,but is now paying at least double what other presidents ever paid.
Who says God doesn't exist indeed!

I guess you are not the only one with this thought.
It would have made much sense if he maintains his kingmaker status, as they call him, and remains an enigma, but no, he has been demystified. Nothing special!

"I can do it. I can do it."

Do it Mr. BATman!

...we don see person wey buhari better ..

Wahala o wa oh!
There are always unintended consequences. Reasons why decisions ought to be thoroughly thought out. But no, we have too many idiots in power.

Las las na this govt. go finally sink us for this country

tensazangetsu20:
He had a first class in ing, he worked at Deloitte and he trained for 20 years to be president.

lori iro. Okay, and Nigerians then asked for his certificate. he couldn't provide an authentic cert, Okay Oga tinubu who did you graduate with . . Oga begin vex. and said they are all dead. . Our problem in nigeria is stupidity. The poor are stupid, that is why they are easily manipulated.

The is a form of wikedness somewhere. Governmental wickedness. It can't be incompetence.

Hmmm, I wish they had done things gradually, in phases, a step at a time, but Nope everything must stop and Nigeria automatically becomes best!


Same with this food importation via land border ban that's been sustained, it will backfire as things stand presently, we don't have enough to feed ourselves now, while you're investing aggressively in Agriculture across ALL zones in the country, not just 3 in the North, allow importation of food people eat most, by the time we start harvesting and have enough, then place a total ban.