The removal of subsidy on Premium Motor Spirit has pushed up the statutory revenue allocations from the Federation Account that was shared by the three tiers of government in 2023 to N10.14tn.
Data released on Tuesday by the Nigeria Extractive Industries Transparency Initiative in its latest report on the Federation Account revenue allocations for the year 2023, showed that the amount shared by the federal, state and local governments increased by N1.93tn last year, when compared to what they got in 2022.
NEITI attributed this increase to the removal of subsidy on petrol by President Bola Tinubu in May 2023, when he declared during his inaugural address on May 29, 2023 that fuel subsidy was gone.
Tinubu’s declaration was immediately implemented by the Nigerian National Petroleum Company Limited the next day, as petrol price jumped from N198/litre to about N500/litre.
The cost of the commodity moved up again within a month to N617/litre at filling stations operated by NNPCL, while other marketers dispense the product at between N660 and N700/litre depending on the area of purchase.
