Home Business FG Moves to Pay N7.7trillion Fuel Subsidy Debts To NNPCL
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FG Moves to Pay N7.7trillion Fuel Subsidy Debts To NNPCL

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Subsidy Removal: Marketers Beg Tinubu, NNPCL to Revive Refineries
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  • The Nigerian government has confirmed plans to pay N7.74 trillion in fuel subsidy debts to the Nigerian National Petroleum Company Limited (NNPCL).

  • The debt accumulated from June 2023 to September 2024 due to exchange rate differentials for importing Premium Motor Spirit (PMS).

  • The government aims to settle the debt within 210 days, but experts raise concerns about Nigeria’s ability to sustain its economic policies.

The Nigerian government has confirmed its plan to settle a fuel subsidy debt of N7.74 trillion owed to the Nigerian National Petroleum Company Limited (NNPCL).

The debt accumulated as an exchange rate differential for the importation of Premium Motor Spirit (PMS) from June 2023 to September 2024.

According to a document presented by the NNPCL to the Federation Account Allocation Committee (FAAC), the government has outlined a plan to clear the outstanding subsidy within 210 days.

The subsidy debt initially stood at N10.499 trillion but was reduced to N7.74 trillion after a recovery of N2.756 trillion between November 2023 and September 2024.

READ ALSO: Multichoice Nigeria Defies FG, Increases DStv, GOtv Subscription Prices

Energy expert Wumi Iledare questioned the rationale behind the government reimbursing NNPCL, stating, “If NNPCL sells oil on behalf of the government and gives it the dollar revenue, why should the government pay back any money? NNPCL should be remitting funds like other oil companies.”

The government’s commitment to settling the debt within 210 days has raised concerns about Nigeria’s ability to sustain its current economic policies without further subsidy-related liabilities.

FG Mulls Shutting Down GAT Over Illegal Activities

The federal government may be considering shutting down the General Aviation Terminal (GAT) of the Nnamdi Azikiwe International Airport, Abuja, following reports that the VIP section of the airport has become a hub for money laundering and other criminal activities.

According to The Guardian, the GAT is the wing dedicated to private jet owners and other aircraft charter services at the airport.

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