The Federal Government is expected to spend N750.81bn on petrol subsidy in 2020, latest data from the Petroleum Products Pricing Regulatory Agency have shown.
For more than two years, the Nigerian National Petroleum Corporation has shouldered petrol subsidy’s spending on behalf of the Federal Government.
It was observed from the PPPRA’s data obtained on Tuesday that the N750.81bn was N300.81bn higher than the N450bn which the Minister of Finance, Zainab Ahmed, recently said had been approved for subsidy in 2020.
The minister had during the public presentation of the 2020 budget details stated that a provision of N450bn had been made for ‘under-recovery’ of cost in respect of the importation of the Premium Motor Spirit, popularly called petrol.
According to her, this cost will be borne by the NNPC as part of its operations cost as currently being practised.
Source: Punch Newspaper
