Nigeria fuel subsidy N1.16trn 2021
Analysis based on 20 articles · First reported Aug 01, 2026 · Last updated Aug 07, 2026
The disclosure highlights significant fiscal leakages in Nigeria's oil and gas sector, potentially affecting investor confidence in the country's revenue management. The ongoing Senate probe may lead to policy changes or increased scrutiny of subsidy and derivation calculations, impacting oil-producing states and the broader economy.
The Nigeria — Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) disclosed that Nigeria spent N1.16 trillion on fuel subsidy in 2021, with an additional N1.20 trillion deducted from federation crude oil sales proceeds. The disclosure was made by RMAFC Chairman Mohammed Bello Shehu before the United Kingdom — Public accounts committee (SPAC), which is investigating the 2021-2023 audit reports on the oil and gas industry prepared by the Extractive Industries Transparency Initiative (NEITI). Other deductions included N16.20 billion for crude and product losses, N22.05 billion for pipeline repairs, and N6.75 billion for strategic stock holding. Shehu also criticized the computation of the 13% derivation revenue, arguing that deductions before calculation undermine the constitutional objective. The committee deferred consideration of the Nigeria — Niger Delta Development Commission (NDDC) submission and expressed displeasure over the absence of the Nigeria — Office of the Auditor-General for the Federation, threatening to compel his appearance.
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