On Thursday, Naija News reported that there were strong indications that the Federal Government had quietly returned to the fuel subsidy regime, with the payment of N169.4 billion as subsidy for the month of August.
This platform understands that the payment of N169.4 billion as subsidy in August was to keep the pump price at N620 per litre.
According to Daily Trust, N169.4 billion paid as subsidy for August was part of the dividends paid by the Nigerian Liquefied Natural Gas (NLNG) for the same month.
A document by the Federal Account Allocation Committee (FAAC), sighted by the platform on Wednesday, revealed that in August 2023, the Nigerian Liquefied Natural Gas (NLNG) paid $275 million as dividends to Nigeria via NNPC Limited. NNPC Limited reportedly used $220 million (N169.4 billion at N770/$) out of the $275 million to pay for the fuel subsidy. Then NNPC held back $55 million.
However, in what might seem to be a return to the fuel subsidy regime, the federal government might have to pay more for the remaining months in 2023 as subsidy because of the hike in global oil prices and the forex crisis in the country.
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