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AfrOil: NNPC data shows huge increase in Nigerian gasoline subsidies

The Nigerian government spent nearly three times as much on domestic gasoline subsidies in the first five months of 2022 as it did in the same period of last year, according to Nigerian National Petroleum Co. Ltd (NNPC Ltd).

According to newly released data from NNPC Ltd, Abuja paid out NGN1.274 trillion ($3.07bn) in gasoline subsidies between January and May, 190.62% up on the figure of NGN438.6bn ($1.06bn) recorded in the first five months of 2021. Nigeria’s National Assembly has authorised the federal government to spend NGN3 trillion on the gasoline subsidy this year.

The steep bill for domestic gasoline subsidies has been preventing Nigeria from taking full advantage of the increase in global oil prices, according to Professor Adeola Adenikinju, director of the Centre for Petroleum, Energy Economics and Law at the University of Ibadan. Adenikinju also said he believed the government would obtain more benefits from subsidising domestic prices for diesel, a crucial fuel for transport and small-scale power generation.