The Group Managing Director of the Nigerian National Petroleum Corporation, NNPC Limited, Mele Kyari says he’s aware of plans by the Nigerian President, Bola Tinubu to provide palliative to citizens to reduce the hardship brought on by the fuel subsidy removal.
Mr. Kyari disclosed this while speaking to journalists after a meeting with the National Working Committee of the ruling All Progressives Congress, APC.
While stating that one of the Nigerian refineries will become active this year which would reduce the cost of importing fuel, the NNPC GMD added that NNPC will eventually stop being the only importer of fuel in Nigeria.
“There is a gradual process now of making a flexible and single effect regime. Everyone will be able to have access to foreign exchange and there is a transition going on now. And NNPC cannot continue to be sole importer. We know that this is going to vanish and the market will stabilize this.
“There is an ongoing process of rehabilitation and one of the refineries will come on stream this year. The second will come on stream next year and the third will come the 2025.
“Of course, it is very obvious that we cannot longer afford it. Subsidy bills have pile up. The country is not able to settle NNPC for the money we are spending on the subsidy. Therefore, pricing these Petroleum at the market is the right ring to do at this time. We believed that this will benefit the overall country in the long run and in a long term” Kyari said.
He added that the immediate past administration did not provide any money for subsidy.
“There was subsidy in 2022 but in 2023, not a single naira was provided for the purpose of financing the subsidy.
“And ultimately while we held back our fiscal obligations, we still have a net balance of over N2.8 trillion that the federation should have given back to the NNPC.
“For any company, when you have negative N2.8 trillion, there is no company in the whole of Africa that will lend to you, you cannot have receivables” Kyari said.