The World Bank has stated that Nigeria spends $4.5 billion on fuel subsidies, indicative of 2% of GDP or 35% of oil and gas revenue.
This was disclosed by the World Bank in the November 2021 edition of its Nigeria Development Update tagged “Time for Business Unusual” on Monday, November 29.
According to the World Bank, benefits of the PMS subsidy overwhelmingly accrue to wealthier households, and a large share is captured by smugglers and black marketeers.
Households in the bottom 40% of the income distribution account for less than 3% of all gasoline purchases.
Nigeria’s PMS subsidy imposes a massive and unsustainable fiscal burden. The cost of the PMS subsidy in 2020 rose from just 4 percent of the oil and gas revenues that are first transferred to the NNPC (US$0.3 billion) to a staggering 35% in 2021 (US$4.5 billion or roughly 2 percent of GDP), the World Bank report noted,
Despite the decline in production, oil and gas revenues collected by the NNPC in the first nine months of 2021 alone; are estimated to broadly match those collected in the entire year in 2020; because global oil prices rose by more than 50 percent between the two periods.
Rebounding oil prices also increased the cost of the PMS subsidy by raising the price of imported PMS; from less than US$200 per ton in April 2020 to US$840 per ton by November 2021; causing net oil and gas revenues transferred to the Federation Account by the NNPC; to plunge from N1.1 trillion to N0.5 trillion.
Meanwhile, the National Agency for Food and Drug Administration and Control (NAFDAC) has warned Nigerians against taking excess antibiotics; saying it accelerates the process of Antimicrobial Resistance (AMR) and leads to avoidable deaths.
The warning is contained in a statement signed by the agency’s resident media consultant, Mr Olusayo Akintola; and also issued to newsmen on Sunday, November 28.
The statement stated that the Director-General of NAFDAC, Prof. Moji Adeyeye, disclosed this; during a virtual meeting/2021anniversary of World Antimicrobial Resistance Week (WAAW).
The theme for this anniversary is “spread awareness, stop resistance,” where Adeyeye sounded a warning; that if allowed to fester, antimicrobial resistance could lead to death.