Thread by @yinkanubi

@OpenFundingNG Pre-2006, it is hard to come by reliable data showing about of money paid as fuel subsidy. But we know from publicly available data that the Nigerian Govt paid somewhere in the neighborhood of N10 Trillion for Fuel subsidies between 2006 – 2018. #GrowthForAll

@OpenFundingNG According to data published by the PPPRA under the Petroleum Support Fund (PSF), the highest subsidy of over N2 Trillion (43% of 2011 Budget) was paid in 2011 while the lowest till date was N24 Billion in 2016. #GrowthForAll

@OpenFundingNG Fuel Subsidy in the Nigerian context is the grant to importers of refined crude products by the govt of the difference between the expected open market price (i.e. landing costs plus distribution margins) and actual pump price) of consumers at the fueling stations. #GrowthForAll

@OpenFundingNG Historically, Fuel Subsidy became a factor in our economic discourse during the tenure of IBB when its removal was listed as one of the conditions for the Structural Adjustment Prog (SAP). Before then, many Nigerians never knew their govt was subsidizing fuel. #GrowthForAll

@OpenFundingNG Subsequent regimes justified every fuel price increase with a need to “remove fuel subsidies”. With perennial challenges of fuel scarcity & low capacity utilization of refineries, govt in 2000 set up a committee on the Review of Petroleum Products Supply & Distribution (SCRPPSD)

@OpenFundingNG Two of the recommendations of this committee was the deregulation & liberalization of the downstream sector and also the establishment of the Petroleum Products Pricing Regulatory Agency (PPPRA). This eventually led to the established of the PPPRA in June 2003. #GrowthForAll
END

@OpenFundingNG *Amount of money