Nigeria's government has provisioned NGN3,360bn (US$7.5bn) for fuel subsidy payment to cover the first six months of this year in the 2023 fiscal period. The Nigerian parliament approved a fuel subsidy in April 2022 with a budget of NGN4,000bn. However, the presidential election is scheduled to take place in February 2023, and the decision to end fuel subsidies could be reviewed by the new administration.
The government has frozen the pump price since December 2020 amid rising international petrol prices. The gasoline subsidy was reinstated in response to rising global oil prices, and since early 2021, the difference between the government-controlled retail price and the cost of supply has been continuously growing. At purchasing power parity, gasoline prices in Nigeria are between 60 and 70% lower than in Ghana, Ivory Coast, and Senegal (2020).
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