The amount spent on petrol subsidy monthly has been depleting the revenues accruable to the Federation Account. Thus limiting the funds being shared by the three tiers of government. It reported that the amount spent as subsidy by the Federal Government on every litre of petrol consumed in Nigeria. This was currently above N600, according to figures from oil sector operators.
The report also revealed that the latest PMS evacuation data from NNPC showed that the year-to-date daily consumption of petrol in Nigeria was 66.8 million litres. Therefore, it implied that the Federal Government would spend about N40.1bn daily. This when subsidising every litre of petrol consumed in Nigeria by at least N600. The huge spending on subsidy had made experts and operators intensify the call for the fast rehabilitation of Nigeria’s refineries.
A renowned energy expert and Technical Director at Template Design Limited, Baka Zaka, who kicked against the push for PMS deregulation. This is one remedy to subsidy spending by the government was for the country’s refineries to work. Also, a former President, of the Association of National Accountants of Nigeria, Dr. Sam Nzekwe, stated that a total halt petrol subsidy would not go down well among the masses. He urged the government to fix the refineries.
Moreover, In April this year, the Minister of State for Petroleum Resources, Chief Timipre Sylva, said the April 2023 completion date for the rehabilitation of the Port Harcourt refinery was workable. He added that the plant would refine 60,000 barrels of crude by early next year.
NNPC officially signed the contract with Tecnimont SPA for the $1. it would complete 5bn rehabilitation programme of the Port Harcourt Refining Company and promised that the facility in 18 months. The Deputy National President, Independent Petroleum Marketers Association of Nigeria. Zarma Mustapha, also stated that fixing Nigeria’s refineries was one major way to halt the huge subsidy spending.