FG plans to spend ₦900bn on fuel subsidy in 2022

The Federal Government has projected to spend N900bn on fuel subsidy to be paid to oil marketers in 2022 in order to maintain the current pump price of N162 per litre.
Minister of Finance Budget and National Planning, Zainab Ahmed, disclosed this on Thursday at presentation of the Medium-Term Expenditure Framework/Fiscal Strategy Paper for 2022-2024 in Abuja.
She also said the Federal Government would spend N13.98tn in the 2022 fiscal year.
In 2022, the government said it would slash capital expenditure to N3.61tn in 2022, from the N4.37tn approved for 2021.

Group Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari, has declared that the country can no longer sustain subsidy, insisting that the corporation has been burdened by the fuel subsidy dilemma even without budgetary provisions.

He said, “The issue needs the help of not only this committee, but also of the National Assembly to achieve results in ensuring that the price of petrol is not regulated and have a framework that will protect Nigerians from undue exploitation.
“We know the way to resolve the subsidy issue is to ensure that PMS is fully deregulated. It is a policy issue, which I am also aware that the National Assembly is involved in some of the engagements to make sure that we have a lasting exit.
“That is the solution to the subsidy dilemma. What is happening now is that NNPC buys the product at a price higher than the N162. We practically discount and sell to marketers, because we can’t shift from the current price to the market price.”