Nigeria’s N9.2trn 19-month Petrol Subsidy Surpasses N8.15trn Spent In 16 Years
The administrations of former President Muhammadu Buhari in the final five months of his term in 2023 and President Bola Tinubu have collectively spent N9.31 trillion on petrol subsidies in 19 months.
Data from Agora Policy, supported by sources such as FAAC communiqués, NEITI reports, and NNPCL’s 2023 AFS, have revealed that Nigeria spent N5.10 trillion on petrol subsidies in 2023, with an additional N4.21 trillion allocated in the first seven months of 2024.
Further analysis from Agora Policy indicates that Nigeria’s total petrol subsidy expenditure reached N8.15 trillion between 2006 and 2021 and N20.37 trillion over 18 years and seven months. In 2022 alone, the government paid N2.911 trillion to subsidise petrol.
In his inaugural speech on May 29, 2023, President Bola Tinubu announced the end of the petrol subsidy. However, the amount spent on subsidies since then has exceeded previous figures. Analysts attributed this increase to the devaluation of the naira following the liberalisation of foreign exchange in 2023.
Since the naira‘s liberalisation, its value has plummeted by over 60%, with the exchange rate soaring to N1,592.06 per dollar this week, compared to N740 on June 1, 2023.
