Nigeria's Fuel Subsidy Cost N1.16 Trillion in 2021

Dr Mohammed Bello Shehu, the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), revealed that Nigeria expended N1.16 trillion on fuel subsidy in 2021. This disclosure was made during his presentation to the Senate's Public Accounts Committee (SPAC), which is investigating the 2021-2023 Audit reports on the oil and gas industry by the Nigeria Extractive Industries Transparency Initiative (NEITI).

In addition to the fuel subsidy, Shehu noted that crude and product losses accounted for N16.20 billion, pipeline repairs cost N22.05 billion, and strategic stock holding was N6.75 billion. He criticized the computation method of the 13% derivation objective, stating it undermined its intention.

The committee, chaired by Senator Ibrahim Dankwabo of Gombe North, postponed the Niger Delta Development Commission's submission for further review. Dankwabo expressed dissatisfaction over the Auditor-General of the Federation's absence and warned of potential consequences if the Auditor-General fails to appear before the committee next Tuesday.