Nigeria spent N10 trillion on petrol subsidy in 13 years— BudgIT

BudgIt has disclosed that Nigeria has spent over more than N10 trillion on petrol import subsidy between 2006 and 2018. An act the organisation calls a brazen corruption. The civic organisation says in its current research, “Nigeria’s Petrol Subsidy Regime: Dilemma of the World’s Most Populous Black Nation” Nigeria currently imports an average of 91% of its daily petrol needs.

Shakir Akorede, BudgIT Communications Associate, in a press statement sent to WEST AFRICA REPORTERS (WAR), say the action of the Nigerian state is disproportionately exposing local petrol prices to price shocks from international factors of production and exchange rate volatility.

Akorede says there is a near perfectly inverse relationship between the fall in the value of Naira and the rise in the cost of imported petrol.

Akorede pointed out that, the continuation of petrol price regulation perpetuates safety nests for exceptional forms of corruption within the country’s subsidy regime.

Nigeria National Petroleum Corporation (NNPC, says there are 2,201 petrol stations in Nigeria’s porous border towns and coastal frontiers, with a combined fuel tank capacity of 144.9 million litres.

A Claim some experts have faulted saying that the population around that area is far from justifying the size of the petrol market.

The organisation says “fuel subsidy” deprives Nigeria of funds needed for critical socio-economic development as it discourages investors, who generally prefer a deregulated industry, from investing in the downstream sector especially in the area of refinery construction and operation.

Pointing out that the 10 trillion consumed by the subsidy regime is sufficient to construct 27,000MW of electricity or build about 2,400 units of 1000-bed standard hospitals across 774 local government areas of Nigeria.

An estimation BudgIt says its research found.

BudgIt has since called on Mr. Muhammadu Buhari, the country president to remove

Petrol subsidy while the state makes the necessary arrangement for palliatives to address the consequences of the subsidy removal.

 

 

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