Chairman of the Alliance for Economic Research and Ethics, Dele Oye, has argued that a 17.5 trillion naira debt owed to the Nigerian National Petroleum Company by the federal government amounts to a disguised fuel subsidy, saying Nigeria is running the most expensive subsidy programme in its history despite the government’s 2023 declaration that subsidy had ended.
Oye said the liability, built up through what NNPC describes as energy security expenses and under recovery claims, represents a continuation of the old subsidy regime under different accounting terms, arguing that the arrangement amounts to a transfer of public wealth outside proper democratic oversight. He said NNPC’s 2024 financial statements showed the federation’s obligations to the company had nearly doubled from 9.36 trillion naira in 2023 to 17.5 trillion naira, comprising 7.13 trillion naira in energy security expenses, 8.67 trillion naira in under recovery claims and 8.84 trillion naira in other receivables from the federation, even as the company reported a record 5.4 trillion naira profit for the year.
He questioned how the liability continues to grow despite the Petroleum Industry Act’s aim of promoting transparency in the sector, and criticized continued reliance on fuel imports despite the commissioning of the Dangote Refinery, which he said should have made such expenses unnecessary. He called for a comprehensive forensic audit of all energy security expenses and related claims, saying Nigerians deserve clarity on financial obligations being accumulated in their name.
