August 18, (THEWILL) – The Minister of Finance, Zainab Ahmed, says Nigeria spends N18.397 billion daily on petroleum subsidies.
The Minister stated this when she appeared before the House of Representatives ad-hoc committee, set up to investigate the subsidy regime from 2013 to 2021, following a summon.
She said that “the figure was arrived at, using information provided by the Nigeria National Petroleum Company, NNPC.”
Mrs Ahmed said, “the projection is that the average daily truck out would be 64.9 million litres per day, using an average exchange rate and open market rate of N448 and twenty Kobo, and a regulated pump price of 165 naira per liter.
“Fuel subsidy is the difference between the pump price, which is now fixed at N165 and the landing cost which we are projecting will average about N448 in 2023.”
She said there was a presidential revenue monitoring committee, led by the ministry to reconcile the revenue generated, where agencies are made to remit any under-remittance.
The Chairman of the ad hoc committee, Ibrahim Aliyu, stated that the committee was constituted to investigate the effectiveness or otherwise of the subsidy regime.
Aliyu expressed concern over a recent remark by the Finance Minister that the country would be requiring the sum of N6.7 trillion for subsidy in 2023.
“The National Assembly, being a major stakeholder, feels this future is worrisome, knowing fully that the country has to resort to borrowing to finance some of the previous budgets”, Aliyu said.
The committee has, however, invited the Accountant General of the Federation to appear before it on the 25th of this month to respond to some of the issues raised.
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