The Nigerian National Petroleum Company Limited (NNPCL) announced on Friday that the monthly subsidy on Premium Motor Spirit (PMS), commonly known as petrol, has exceeded N400 billion. Group Chief Executive Officer Mele Kyari made the disclosure at the company’s headquarters during the ongoing final cutover from NNPC Limited to a corporation.
Kyari explained that the oil company is spending about N202 in subsidy for every litre of petrol consumed nationwide. He noted that NNPCL pumps roughly 65 million litres of PMS into the market each day. While the company will continue to meet its obligations by supplying PMS to Nigeria, Kyari emphasized that the monthly subsidy of over N400 billion is placing a severe strain on NNPCL’s cash flow.
As the sole importer of petrol in Nigeria, NNPCL has borne the substantial cost of the fuel subsidy for several years. In contrast, other private oil marketers have ceased importing petrol due to difficulties in accessing the U.S. dollars required for PMS imports.
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