TheCable news reports that NNPC Limited spent a total of N3.3trn between January and November 2022. Specifically, a total of N210.38bn was spent in January, N219.78bn in February, N245.77bn in March, N271.58bn in April, N327.07bn in May, N319.17bn in June, N448.78bn in July, N525.71bn in August, N341.93bn in September, N239.41bn in October and N152.85bn in November 2022. This amounts to N676bn in Q1 2022, N918bn in Q2 2022 and N1.32trn in Q3 2022. Overall, total subsidy claims as of September 2022 was N2.91trn while the total petrol imports was N3.66trn. 

Meanwhile, based on data from the Nigerian bureau of statistics, the total value of premium motor spirit imported in Q1 2022, Q2 2022 and Q3 2022 were N1.51trn, N949bn and N1.20trn respectively. We note particularly that the total subsidy claim for Q3 2022 was 9.73% higher than the value of total premium motor spirit imports for same quarter. We note also that data from the Central Bank of Nigeria (CBN) shows that the average price of crude oil in Q1 2022, Q2 2022 and Q3 2022 were 103.19, 117.78 and 106.71 respectively. Likewise, the average exchange rates for the period were 416.06, 415.79 and 422.09 for Q1 2022, Q2 2022, and Q3 2022. 

While the current PMS pricing template of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is not publicly available, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mr. Mele Kyari had in 2022 suggested that the landing cost was N327.68 per litre as at September and N510 per litre as at November. We continue to note that the full deregulation of the petroleum industry as provided in the Petroleum Industry Act (PIA) is critically essential particularly now that the nation is faced with burgeoning debt profile amidst fiscal constraints.