Subsidy projected to hit over N4.05trn

The Nigerian National Petroleum Corporation (NNPC) has been projected would spend about N4.05 trillion on petrol subsidy at the end of the year, more than half of the country’s 2022 budget, a BusinessDay analysis has shown.

The latest Federation Account Allocation Committee (FAAC)’s report shows that the oil firm has spent about N1.35 trillion in the first four months of the year, indicating a 19.6 percent of the total budget of Nigeria for 2022.

Read also: IMF urges Nigeria, other oil-exporting countries to build buffers

Following this trend, BusinessDay analysis forecasted that it could hit more than half of the budget by the end of the year.

Meanwhile, the NNPC plans to deduct about N672 billion from its remittance to the Federation Account Allocation Committee (FAAC) in May for its petrol subsidy.

This development will further put state governments in a difficult financial position.