The Federal Government and the Nigerian National Petroleum Company Limited (NNPCL) are finalizing plans to settle a monumental N7.7 trillion fuel subsidy debt accumulated over the years.
This development comes as Nigeria continues to navigate the economic repercussions of the fuel subsidy removal, which led to a sharp increase in petrol prices and widespread hardship.
Government officials have stated that the settlement plan will involve a phased payment structure, ensuring that outstanding debts owed to oil marketers and other stakeholders are cleared without exerting excessive strain on national finances. The NNPCL, which bore the financial burden of subsidizing fuel, has been pressing for the reimbursement to stabilize its operations and investment plans.
Economic analysts argue that while settling the debt is necessary to maintain investor confidence, the government must also work toward long-term energy sector reforms that reduce dependence on fuel imports. Calls for the revival of domestic refineries and investments in alternative energy sources have intensified, with many stakeholders urging swift action to prevent future subsidy-related financial crises.