TEN FACTS ON FUEL SUBSIDY

FACT ONE: Even if all NNPC refineries were functioning optimally, importation of petroleum products would still be required to augment local production.

FACT TWO: Even if FG allocated 450,000BPD of oil free of cost to NNPC for local refining, the subsidy is the loss of USD value of the allocated oil to Nigeria.

FACT THREE: Building more local refineries to meet local demand will still require allocation of more oil that would otherwise be sold for USD.

FACT FOUR: Even if NNPC had refining capacity to meet Nigeria's petroleum products needs, its refining and distribution costs will be built into the fuel subsidy.

FACT FIVE: FG pays the bridging costs of all the trucks that come from various parts of Nigeria to lift petroleum products from Lagos.

FACT SIX: The total annual cost of NNPC repairing or replacing its vandalized petroleum products pipelines is part of the fuel subsidy.

FACT SEVEN: The quantity and cost of petroleum products smuggled out through Nigeria's porous borders is part of the fuel subsidy.

FACT EIGHT: The loss of revenue to FG of not charging any customs duty on imported petroleum products is part of the cost of fuel subsidy. 

FACT NINE: The costs of all the government agencies, consultants and security agencies overseeing the importation of petroleum products is part of the fuel subsidy.

FACT TEN: NNPC is allocated 450,000BPD of oil, refines 25% locally and sells the balance to fund its petroleum importation and pipelines repairs.