Nigeria spent about **N1.16 trillion on petrol subsidy in 2021**, according to data contained in Nigeria’s oil and gas industry reports.
CDA News Nigeria reports that the figure represented the cost of petrol subsidy, also known as under-recovery or value shortfall, during the period under review.
CDA News gathered from the report that the **N1.16 trillion fuel subsidy spending in 2021** formed part of deductions made from oil revenues before funds were transferred to the Federation Account. The expenditure covered the period when petrol prices were kept below the market cost.
Data from the Nigeria Extractive Industries Transparency Initiative (NEITI) showed that the subsidy or product value-loss component amounted to about **$3.031 billion**, equivalent to N1.16 trillion. The amount represented about 13.15 per cent of the total deductions reported for the year.
The huge cost of subsidy placed pressure on government revenue and reduced the amount available for distribution to the federal, state and local governments.
The figures also highlight the financial burden associated with petrol subsidy before the Federal Government began implementing major reforms in the downstream petroleum sector.
The subsidy issue has remained a major subject of debate in Nigeria, particularly over its impact on public revenue, petrol prices and the cost of living.
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