Fuel Subsidy: Nigeria Paid $65B In 4 Years–Ibe Kachikwu

By Segun Olaoluwa

The minister of state for petroleum resources Ibe Kachikwu has said Nigeria spent $65 billion (N20.4 trillion) on subsidies for fuel and Kerosene between 2011 and 2015.

Kachikwu said the amount spent excludes $6 billion which was lost to vandalism during the period under review.

Represented by the deputy director of engineering and standards Olumide Adeleke on Thursday, June 15, at a two day African modular refinery forum, Kachikwu said decried the fact that Nigeria was still importing 92% of the fuel daily.

"The foreign exchange requirement for importation of petroleum products is estimated at $28bn (N3.35tn) annually, with 40 per cent of the total amount (N1.34tn) dedicated to financing the logistics of importation," Kachikwu said.

The minister also said there is a resolve to ensure that Nigeria achieves 50% domestic refining capacity by the fourth quarter of 2018 and 100% domestic refining capacity by that of 2019.