FG’s ₦17.5tn Debt To NNPC Reveals Hidden Fuel Subsidy, Says Economist Dele Oye

FG’s ₦17.5tn Debt to NNPC Reveals Hidden Fuel Subsidy, Says Economist Dele Oye Economist and Chairman of the Alliance for Economic Research and Ethics, Dele Oye, has said the Federal Government’s reported ₦17.5 trillion debt owed to the Nigerian National Petroleum Company Limited NNPC Ltd reflects the continued existence of fuel subsidy arrangements despite official claims that subsidy payments have been removed. Oye said the debt obligation highlights the financial burden created by government interventions in the petroleum sector, arguing that some subsidy related costs may have continued through alternative mechanisms rather than direct budgetary payments. According to the economist, the accumulation of liabilities between the government and NNPC raises concerns about transparency in the management of petroleum revenues and the true cost of fuel pricing policies.

The Federal Government announced the removal of petrol subsidy in 2023 as part of economic reforms aimed at reducing public expenditure and allowing market forces to determine fuel prices. However, debates have continued over the impact of the policy, exchange rates, crude oil prices, and the role of government support mechanisms in the downstream petroleum sector. Oye called for greater clarity in the accounting of petroleum-related obligations, saying Nigerians need a clearer understanding of how government fuel pricing decisions affect public finances. The Federal Government and NNPC have not indicated that the reported debt represents a return to the former subsidy regime, maintaining that ongoing reforms are aimed at improving efficiency and reducing fiscal pressures.