The Federal Government’s indebtedness to the Nigerian National Petroleum Company Limited as exchange rate differential (subsidy) for the importation of Premium Motor Spirit (petrol) rose to N7.74tn as of September 2024 when the deregulation of the downstream oil sector was fully implemented.
This amount covers the cost of maintaining a specific price range in the retail market, despite acquiring the product at a higher rate between June 2023 and September 2024.
This was disclosed in a presentation by the national oil company to the Federation Account Allocation Committee at its February meeting in Abuja.
Our correspondent obtained a copy of the document on Monday. The FAAC document also revealed that the government is working out measures to settle the N7.74tn fuel subsidy debt within a period of 210 days.
In August, The PUNCH exclusively reported that the NNPCL demanded a refund of N4.71tn from the government to settle outstanding debts used to import petrol.
