The daily suspension of subsidy on petrol in Nigeria seem to be yielding good results as the country now saves N647.2 million daily.
– At the current price of N86.50 per litre in petrol stations across the country, Nigeria is making an extra N16.18 per litre.
– The Muhammadu Buhari government is keeping the savings in an escrow account to serve as a cushion in case of eventuality especially as regards the international oil market
The government of President Muhammadu Buhari is currently saving N647.2 million daily following the suspension of subsidy on petrol in Nigeria.
President Muhammadu Buhari is saving for the rainy day
As things stand now, the government is making an extra N16.18 for every litre bought at the current price of N86.50 per litre in petrol stations across Nigeria.
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According to the government, the savings are kept in an escrow account to serve as a cushion in case of any eventuality, especially in the international oil market.
The move was informed by the continuous decline in the price of crude oil in the international market, which in turn dragged the open market price of petrol to N70.32 per litre in Nigeria.
The N647.2 million quoted is based on the average daily consumption of petrol by Nigerians which is estimated to be 40 million litres by the federal government.
According to Vanguard, since the announcement and commencement of the price modulation regime by the federal government, the open market of petrol had fluctuated between N4 and N12 per litre before rising to its current level.
Recall that Nigeria’s minister of state for petroleum, Ibe Kachikwu, last week, saidthe federal government did not pay any subsidy on petroleum products in January 2016.
Kachikwu who is also the group managing director of the Nigerian National Petroleum Corporation (NNPC) said this when he he appeared before the House of Representatives’ ad-Hoc committee set up to investigate the NNPC’s offshore processing and crude swap arrangement for the period from 2010 to date.
Kachikwu had also stated that Nigeria would save $1 billion (N200 billion) from the newly introduced Direct-Sale-Direct-Purchase, (DSDP), arrangement in Nigeria’s crude oil for products transaction which is to commence next month.
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Meanwhile, a recent report by the Nigerian Bureau of Statistics (NBS) revealed that Nigeria spent N20.2 trillion to import petroleum products between January 2010 and September 2015.
The report was jointly compiled by both the NBS and the Petroleum Products Pricing Regulatory Agency (PPPRA).
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