The Federal Government of Nigeria is recently paying an average of NGN45.87 as fuel subsidy on litre of fuel used in the country.
The Petroleum Products Pricing Regulatory Agency (PPPRA) stated that the Federal Government through the Petroleum Agency, Nigerian National Petroleum Corporation expends an average of N45.87 as Subsidy in the first 10 days of 2020.
The Petroleum Products Pricing Regulatory Agency is a Federal Government Organization with the responsibility to regulate Petroleum Products Price while NNPC is the main and sole importer of Premium Motor Spirit into the country for over two years now.
The Nigerian National Petroleum Corporation stated that it categorizes its subsidy spending on fuel as under-recovery on the ground stating that only National Assembly has budgetary power to approve subsidy.
The PPPRA pricing template from January 2, 3, 4, 5, 6, 7, 8, 9 and 10 placed the Expected Open Market Price (EOMP) per litre at NGN182.05, NGN182.28, NGN183.5, NGN179.5, NGN172.93, and NGN174.52 each day respectively and that the EOMP and Ex-depot price for collection for all the days include NGN48.71, NGN49.00, NGN50.22, NGN46.32, NGN39.65 and NGN41.27 thereby their average is at N45.87.
However, the Federal Government of Nigeria through Nigerian National Petroleum Corporation expended NGN45.87 on all PMS consumed by Nigerians.