Despite President Bola Tinubu’s repeated assurances that fuel subsidies have been eliminated, findings by Daily Trust indicate the federal government paid N169.4 billion in subsidies for petrol in August.
![](https://thenigerialawyer.com/wp-content/uploads/2026/09/2026-IDRI-Masterclass.png")
Documents from the FAAC show NNPC Limited used $220 million (N169.4 billion) from a $275 million dividend by NLNG to pay for subsidies last month. This revelation contradicts claims of subsidy removal.
The Buhari administration spent a record N7.83 trillion on petrol subsidies from 2015-2022. Tinubu’s government was expected to end subsidies completely after past increases put pump prices around N630/litre.
But with oil crossing $95 per barrel and the naira weakening, current pump prices of N620/litre are well below market rates, signaling ongoing subsidies. Landing costs based on import prices have risen beyond N720/litre based on inflation and forex swings.
NNPC’s $3 billion loan deal with Afrexim bank was meant to provide dollars for exchange rate stability and lower fuel costs. But with the loan reportedly stalled, subsidies have made an understated comeback using NLNG dividends to cushion costs.
Experts say pump prices will keep increasing with dollar and oil price hikes if an underlying subsidy system isn’t formally reestablished. Stabilizing the naira is also critical to fulfill government promises on fuel costs.
The revelation puts the administration in an awkward position after emphatically declaring an end to subsidies. With citizens struggling, a return to subsidies appears necessary despite initial plans. The government may need to openly acknowledge the subsidy reintroduction.
[A MUST HAVE] Evidence Act Demystified With Recent And Contemporary Cases And Materials
Available now for NGN 40,000 at ASC Publications, 10, Boyle Street, Onikan, Lagos. Beside High Court, TBS. Email publications@ayindesanni.com or WhatsApp +2347056667384. Purchase Link: https://paystack.com/buy/evidence-act-complete-annotation
______________________________________________________________________ “Enhance Legal Practice With Authoritative Reports” — Alexander Payne Offers Comprehensive Law Reports, Spanning Over A Century Of Nigerian Jurisprudence
Interested buyers are encouraged to place their orders and enquiries via:
0704 444 4777, 0704 444 4999, 0818 199 9888
Website: www.alexandernigeria.com
