FG REPORTEDLY PAYS N169.4 BILLION IN AUGUST, SUSTAINING THE SUBSIDY.

Babatunji Wusu –

The federal government reportedly spent N169.4 billion as a subsidy in August to maintain the pump price at N620 per litre.

Several publications, according to the report, have suggested that the present price stagnation, despite the worsening exchange rate and the worldwide crude price topping $95 a barrel, indicates a return of subsidy.

According to a Federal Account Allocation Committee (FAAC) document obtained by DailyTrust on Wednesday, August 2023 will see $275 million in dividend payments from Nigerian Liquefied Natural Gas (NLNG) through NNPC Limited.

Out of the $275 million, NNPC Limited spent $220 million (N169.4 billion at N770/$) to pay for the PMS subsidy. Then, NNPC unlawfully withheld $55 million.

According to the report, the FAAC’s admission effectively shows that the subsidy is restored and that NNPC is now using NLNG dividends to pay the subsidy.