The Federal Government spent about six hundred and fifty billion naira on petrol subsidy in twelve months.
Latest statistics from the Nigerian National Petroleum Corporation, NNPC have showed that petrol is imported into Nigeria solely by the Federal Government-owned Corporation.
The NNPC subsidises the commodity to ensure that it is not sold above one hundred and forty five naira per litre at filling stations across the country.
The NNPC, however, classifies its subsidy spending as under-recovery as it has constantly argued that only the National Assembly can approve subsidy.
Under-recovery is the additional cost that the NNPC is incurring in subsidising the price of petrol in order to ensure that it is sold at the regulated price of one hundred and forty five naira per litre, even when the real market price is above this regulated rate.
