Nigeria could spend up to 6.72 trillion naira ($16.2 billion) next year if it keeps a fuel subsidy in place; Finance Minister Zainab Ahmed, a nearly 70% jump from this year’s budget. And also; In April Nigeria’s parliament approved a 4 trillion naira petrol subsidy for this year; after President Muhammadu Buhari asked for additional funds to offset higher global oil prices driven by the conflict in Ukraine.
Thereafter, Ahmed said the federal government was working with two scenarios; one that assumed a “business-as-usual” approach where a subsidy would be in place throughout 2023 and would cost 6.72 trillion naira. The second option “assumes that petrol subsidy will remain up to mid-2023 in which case only 3.36 trillion (naira) will be provided for,”; she said during a pre-2023 budget consultation in the federal capital Abuja.
Africa’s biggest oil producer, Nigeria imports all of its refine products because local refineries mothballed for years. It has started to repair some of the refineries. However, higher crude prices are offset by lower production due to oil theft and vandalism of pipelines in the oil-rich Niger Delta; said Ahmed.
Thereafter, she said oil output had averaged 1.32 million barrels per day during the first four months of this year. That means Nigeria has failed to meet its 1.8 million bpd OPEC quota. Oil and gas revenue, which came in at 1.23 trillion naira between January and April; was way below a projected 3.12 trillion naira, Ahmed said.
