Under the administration of President Bola Tinubu, Nigeria is set to allocate N6.8 trillion for fuel subsidies from August 2023 to December 2024, marking a 17-month period.
This expenditure is unprecedented in the country’s history, surpassing previous subsidy allocations.
President Tinubu has approved the use of dividends from the Nigerian National Petroleum Company Limited (NNPCL) to cover these subsidy costs. The NNPC has reported that these subsidy payments have hindered its ability to contribute taxes and royalties to the federal account, citing a “subsidy shortfall/FX differential.”
This development follows President Tinubu’s previous declaration that fuel subsidies would be abolished. Historical data reveals that the highest subsidy expenditure between 2005 and 2022 was N3.36 trillion in 2022. Although the highest single-year subsidy figure from 2005 to 2021 was N2.1 trillion in 2011, the projected N6.8 trillion expenditure for the 17-month period significantly exceeds past figures.
The substantial subsidy bill may be attributed to the ongoing depreciation of the naira against the dollar, coupled with the persistent inefficiencies of Nigeria’s refineries, which necessitate continued fuel imports. This scenario underscores a notable increase in subsidy expenditure since 2005.
![A protester reacts while running past a burning tyre used as a barricade during clashes with Malagasy security forces amid a strike calling for constitutional reforms and the resignation of President Andry Rajoelina in Antananarivo. [Luis Tato/AFP]](https://sp-ao.shortpixel.ai/client/to_auto,q_glossy,ret_img,w_350,h_250/https://timeafricamagazine.com/wp-content/uploads/2025/10/Madagasca.webp)
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