N17.5 Trillion Debt to NNPC is Disguised Fuel Subsidy

Dele Oye, the Chairman of Alliance for Economic Research and Ethics Ltd/GTE and former President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), stated that the N17.5 trillion debt owed by the federal government to the Nigerian National Petroleum Company Limited (NNPC) represents a disguised fuel subsidy. Oye emphasized that Nigeria is operating the most expensive subsidy program in its history, despite the government's announcement of subsidy removal in 2023.

He noted that this liability, categorized under "energy security expenses," "under-recovery," and other receivables, reflects a continuation of the subsidy regime under a different guise. Oye criticized the government's failure to eliminate the financial burden, stating that it has merely transformed into an accounting issue, increasing pressure on public finances.

He highlighted that the federation's obligations to NNPC have risen significantly, with the 2024 financial statements revealing a staggering N17.5 trillion liability, nearly double the N9.36 trillion recorded in 2023.