The Federal Government of Nigeria (FGN) has so far saved about N400bn within the four weeks following the removal of payment of subsidy on Premium Motor Spirit (PMS) popularly called petrol.

This is according to the Independent Petroleum Marketers Association of Nigeria (IPMAN).

“Right now, they (the government) are making money. At least with this removal of subsidy, the government has racked in hundreds of billions, whether in naira or dollar,” the National President of IPMAN, Chinedu Okonkwo, said.

“This is because every month we know how much they lose before.”

Okonkwo said further that oil marketers had been told how much the Nigerian National Petroleum Company Limted (NNPCL) was spending on subsidy monthly.

He also made reference to the comments of the Group Chief Executive Officer (GCEO) of NNPCL, Mele Kyari, during a meeting with oil sector operators earlier in February.

“Today, by law and the provisions of the Appropriation Act, there is a subsidy on the supply of petroleum products, particularly PMS imports into our country,” Kyari had said at the meeting.

“In current data terms, three days ago, the landing cost was around N315/litre. Our customers are here, we are transferring to each of them at N113/litre.

“That means there is a difference of close to N202 for every litre of PMS we import into this country. In computation, N202 multiplied by 66.5 million litres, multiplied by 30 will give you over N400bn of subsidy every month.”
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