Nigeria spends a whooping N774million subsidizing 50 million litres of petrol daily, says Maikanti Baru, the group managing director, Nigerian National Petroleum Corporation. The state oil company’s chief said this during his visit to the Comptroller General of the Nigerian Customs Service, Col. Hammed Ali (retd.)
He attributed the huge subsidy payment to the proliferation of filling stations in communities with international land and coastal borders across the country. He explained that the sheer increase in filling stations had encouraged cross-border smuggling of petrol to neighbouring countries, making it an uphill task to effectively monitor supply and distribution of the product in Nigeria.
Baru further stated the NNPC’s study of petrol supply and distribution showed a correlation between the increased frontier stations and fuel smuggling activities.
The study, he said, also revealed a surge surge in the supply of petrol from less than 35 million litres per day to more than 60 milion litres per day, a development that contradicts the country’s petrol consumption pattern.