According to the Nigeria Extractive Industries Transparency Initiative (NEITI), from 2005 to 2020, Nigeria spent N13.7 trillion ($74.386 billion) on fuel subsidies.
This information was provided in a report NEITI delivered on Thursday to the House of Representatives special committee looking into Abuja’s gasoline subsidy system from 2013 to 2022.
According to the report presented by NEITI Executive Secretary Ogbonaya Orji, the subsidy payments in 2005 were N351 billion ($2.66 billion); N219.72 billion ($1.70 billion) in 2006; N236.64 billion ($1.89 billion) in 2007; N360.18 billion ($3.03 billion) in 2008; N198.11 billion ($1.60 billion) in 2009, and N416.45 billion ($2.76 billion) in 2010.
Furthermore, in 2011, the payment was N1.9 trillion ($12.18 billion); N690 billion ($4.34 billion) in 2012; N495 billion ($3.11 billion) in 2013; N482 billion ($2.92 billion) in 2014; N316.70 billion ($1.62 billion) in 2015; N99 billion ($0.39 billion) in 2016; N141.63 billion ($0.44 million) in 2017; N722.30 billion (2.36 billion) in 2018, N578.07 billion (1.88 billion) in 2019, and N134 billion (0.37 billion) in 2020.
TechEconomy reported economists insisting that subsidies slow the Nigerian economy, making it unproductive.
They say fuel subsidy ought to have been removed many years as the non-removal compels the Central Bank of Nigeria (CBN) to continue to squander money.
“Fuel subsidy is clearly fraudulent, inefficient, and unproductive,” Godwin Owoh, Professor of Applied Economics, noted in a 100-page report seen by TechEconomy.
“When other countries talk about subsidies, it is about helping companies, including public enterprises, to maximize their profits. But subsidies are equal to fraud in Nigeria.