By AYOOLA OLAOLUWA
Experts in the financial and petroleum sector as well as exhaustive data obtained by Business Hallmark have exposed the fuel subsidy regime as a huge scam.
The Nigerian National Petroleum Corporation (NNPC) had put the average daily consumption of petrol at 75 million litres per day.
Based on an average 75 daily consumption estimate, the Federal Executive Council (FEC) had in January 2022 approved the sum of N3 trillion for the new subsidy regime.
The N3 trillion fuel subsidy budget amounts to 17.5 per cent of the total 2022 budget of N17.126 trillion which has a deficit of N6.39 trillion (37% of the N17.126 trillion national budget).
Also, the N3 trillion subsidy budget is 55% and 43% of the capital component and recurrent expenditure of the 2022 budget, respectively.
Meanwhile, the NNPC had never provided any methodology on how it arrived at the fuel consumption rates it employs to determine the subsidy bill it usually presents to…