CURRENT REPORT BLOG it has been reported that the federal government disbursed N169.4 billion in subsidy payments during the month of August to maintain the pump price at N620 per litre, as disclosed by DailyTrust.
Numerous indications have emerged, suggesting that the persistent price stability, despite the deteriorating exchange rate and international crude oil prices exceeding $95 per barrel, implies a resurgence of subsidy.
A document from the Federal Account Allocation Committee (FAAC), uncovered by DailyTrust on September 20, revealed that in August 2023, the Nigerian Liquefied Natural Gas (NLNG) remitted $275 million in dividends to Nigeria through NNPC Limited. NNPC Limited utilized $220 million (equivalent to N169.4 billion at the rate of N770/$) out of the total to cover the PMS subsidy, retaining $55 million improperly.
FAAC’s disclosure strongly suggests that the subsidy has made a comeback, with NNPC now utilizing NLNG dividends for subsidy payments, according to the report.
