The amount spent by the Federal Government through the Nigerian National Petroleum Company Limited as subsidy on Premium Motor Spirit, popularly called petrol, in January and February this year is N430.165bn.
NNPC disclosed this in its latest presentation to the Federation Account Allocation Committee meeting for March 2022, as it informed the meeting that it would deduct about N328bn from what would be shared by FAAC in April 2022.
In the presentation, which was obtained by our correspondent in Abuja on Sunday, the national oil company described its subsidy spending as an under-recovery of PMS/value shortfall.
The development means state governments may sinker deeper into financial crisis as there will be a lower amount to be shared by FG, states and LGs at the monthly FAAC meeting.
The NNPC stated that in January this year the sum of N210.38bn was used to subsidise petrol, while N219.78bn was spent as subsidy in February. NNPC, being the sole importer of petrol into Nigeria, subsidises the commodity for users of petrol. The subsidised pump price of petrol as approved by the Federal Government is between N162 to N165/litre.
