Rainoil boss says Tinubu’s govt pays ₦600bn monthly on fuel subsidy

Fresh revelations is pointing to the fact that the federal government has reintroduced subsidy from the back door after the free fall of the Naira. The new facts have begun to unravel regarding the removal of fuel subsidies, and there are ongoing claims that President Bola Tinubu’s administration is secretly paying more for subsidies than the previous administration. Former governor of Kaduna State Nasir El-Rufai, a chieftain of the All Progressive Congress (APC) and ally of President Tinubu, confirmed this allegation recently. He confirmed this to newsmen in Maiduguri, Borno State capital, on Monday, April 15, while fielding questions from journalists.

As quoted by Daily Trust, he said, “We are still subsidising Petrol because the government has realised that the way it implemented the fuel subsidy initially required some adjustments.” Similarly, Gabriel Ogbechie, the CEO of Rainoil, asserted that the government reinstated the contentious fuel subsidy after the Naira’s devaluation in the foreign exchange  market. At Tuesday’s Stanbic IBTC Energy and Infrastructure Breakfast Session in Lagos, Ogbechie highlighted that Nigeria’s daily fuel consumption is 40 million litres and a foreign exchange rate of ₦1,300. 

This situation results in a subsidy range of ₦400 to ₦500 per litre of fuel, leading to a significant monthly expenditure of N600 billion. According to Businessday, he said, “If you look at our daily consumption, say 40 million litres, and we’re spending N500 per litre, that is about N20 billion every day, N600 billion every month and 7.2 trillion yearly depending on how we look at it. So, the subsidy is definitely back on petrol.”