The Nigerian government has officially confirmed its plan to settle the outstanding fuel subsidy debts owed to the Nigerian National Petroleum Corporation Limited (NNPCL). The total amount of the debt stands at a staggering N7.7 trillion, accumulated over several years due to the government’s commitment to subsidizing fuel prices for Nigerian citizens.
In a statement issued today, the Minister of Finance, Budget, and National Planning, Zainab Ahmed, reaffirmed the government’s determination to clear the fuel subsidy backlog, signaling a significant step toward resolving the country’s fiscal challenges and restructuring the national economy. This payment is part of a broader effort to stabilize the country’s energy sector and promote sustainable economic growth.
"Today marks a pivotal moment in Nigeria's journey towards fiscal stability and long-term economic sustainability," said Minister Ahmed. "The government remains committed to addressing the fuel subsidy issue, which has posed significant challenges to our national finances for years. We believe that settling these debts with NNPCL will pave the way for more robust and transparent energy sector policies in the future."
The settlement of the N7.7 trillion debt is expected to have far-reaching implications for Nigeria's fiscal policy and the broader economic environment. By addressing the subsidy backlog, the government aims to refocus resources on infrastructure development, social services, and diversifying the economy away from over-reliance on oil revenue.