Nigeria has removed petrol subsidy from its books – officially.

But someone has to pay the difference between the actual price of importation and retail price.

To fill the vacuum, the Nigerian National Petroleum Corporation, NNPC stepped in.

NNPC dips its hands into its pocket to pay for that difference.

That difference is called under-recovery and the Minister of State for Petroleum Resources, Ibe Kachikwu put the estimates of the under-recovery at 1.4 trillion naira recently.

Perhaps, he underestimated or overestimated it. That has now informed his issuing a statement to clarify what he told newsmen.

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Kachikwu in a statement by the Petroleum Ministry on Monday said his attention had been drawn to reports in which he was quoted to have said;

“Nigeria presently incurs over 1.4 trillion naira till date as under-recovery or losses on the importation and sale of petrol”.

He explains it is NNPC that is in the best position to give the accurate figures of the amount of under-recovery involved because the regulator is importing most of the Premium Motor Spirit (petrol) retailed in Nigeria.

Whatever is the accurate figure or whoever is giving it, what is certain is that subsidy is being paid and trillions of naira are lost to fuel importation every year.

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