Nigeria To Retain Fuel Subsidy, Sell At N162, Despite PIA

The Federal Government of Nigeria on Tuesday said the retail price of Petrol otherwise called Premium Motor Spirit, will remain at N162 per litre until a feasible framework is developed. This is Contrary to expectations that the signing of the Petroleum Industry Act (PIA) by President Buhari would automatically commence the deregulation of the downstream sector, especially the removal of subsidy,

The government spent N438.37 billion on subsidy payments as of June 2021. The removal of subsidy will lead to an upward review of petrol retail price, rising to at least N400 a litre.

The Group General Manager in charge of Public Affairs Division of the Nigerian National Petroleum Corporation (NNPC), Garba Deen Muhammad, confirmed yesterday that fuel subsidy would remain, pending the outcome of the current negotiations with labour unions in the country.

He said there would be chaos in the country if the subsidy was removed now.

Marketers and state governors have been pushing for the removal of subsidies, considering its effects on their monthly allocations and contributions of the Nigerian National Petroleum Corporation (NNPC) to the Federation Accounts Allocation Committee (FAAC).