Did Nigeria Continue Paying Petrol Subsidy Through NNPCL’s ₦17.5tn Receivables?

More than three years after President Bola Tinubu announced that fuel subsidy had ended, questions remain over NNPCL’s ₦17.512 trillion receivable from the Federation. A former NACCIMA president, Dele Oye, said the full amount should not automatically be labelled fuel subsidy. However, he argued that a substantial part of the “energy security costs” had the economic effect of an implicit subsidy because petrol consumers did not bear the full import cost immediately. NNPCL’s audited accounts recorded about ₦7.131 trillion in energy security costs in 2024, largely linked to foreign-exchange differences on imported petrol. Oye said the costs and deductions may have reduced revenues available for sharing through FAAC, affecting funding for public services. He called for an independent forensic audit, full reconciliation of NNPCL’s claims and deductions, and clearer legal approval for any future petrol price-support arrangement.

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