N1.76t spent on subsidy in 2011 – CBN

 About N1.76 trillion was spent on the subsidy of petroleum products by the country last year alone, the Central Bank of Nigeria has revealed.

 A Deputy Governor of the CBN, Mr, Kingsley Moghalu, who stood in for the Governor, Mallam Sanusi Lamido Sanusi, revealed this on Tuesday when the bank made its presentation on the fuel subsidy probe by the House of Representatives.

 Moghalu told the Ad Hoc Committee chaired by Hon, Lawan Farouk: “The total amount spent for fuel subsidy alone in 2011 was N1.76 trillion.”

 Earlier figures had been put at N1.3 Trillion whereas the provision made for subsidy in last year’s budget was N240 billion.

 Moghalu said the role of the CBN in the management of the fuel subsidy fund is limited, adding: “What it (CBN) does is to ensure monetary and price stability. And is pertinent to note that CBN is not involved in the payment of the subsidy. ”

He said the Petroleum Stability Fund set up for the stability of petroleum prices has its account domiciled in the CBN and operated by the Petroleum Products Pricing Regulatory Agency, adding: “The account was opened on December 15, 2001 and credited with N673.8 billion and withdrew N666 billion leaving a balance of N6.257 billion.”