According to recent data from Nigeria’s state-owned National Oil Corporation (NNPC), the company spent 4.39 trillion naira ($9.7 billion) on a petrol subsidy last year.
This cost has been cited as a major contributor to the country’s dwindling public finances, as the NNPC failed to transfer funds to federal accounts.
The Nigerian government has struggled to remove or reduce the subsidy, which is a politically sensitive issue in the nation of 200 million.
The country relies heavily on importing refined fuels as local refineries have been shuttered due to neglect.
Additionally, oil production in Nigeria has been impacted by crude theft and pipeline vandalism, resulting in the country spending more on fuel imports than it earns from crude oil production.
Finance Minister Zainab Ahmed has stated that the country will maintain the costly but popular petrol subsidy until mid-2023 and set aside 3.36 trillion naira ($7.5 billion) to cover the cost.