As an intervention short-term strategy, CBN will intervene in the urgent provision of a special fund to rescue Airline Operators of Nigeria AON from strike action. A strike by AON was called off yesterday
CBN will provide AON 6 million liters of Jet A 1 Fuel
at 480 subsidized rate to prevent another imminent shut down by AON operators
The fund will be channeled directly to AON, for onward allocation to oil marketers, not middlemen.
The world’s 6th largest oil producer, Nigeria, lacks a fully functional refinery. The 4 refineries are epileptic, resulting in mass importation of refined petroleum products, subsidized by the government.
The 2022 budget factored 4 Trillion Naira as subsidies, about 25% of the annual budget, channeled through supplementary appropriation. The subsidy strategy is not sustainable, as it is channeled toward consumption, not production.
The much-talked-about Dangote refinery will start operations by end of the year, with an expected refined capacity of 650,000 BPD.
