The Nigerian President, Bola Tinubu, is reportedly planning to offer relief to the populace to lessen the hardship brought on by the removal of fuel subsidies, according to the Group Managing Director of the Nigerian National Petroleum Corporation, NNPC Limited, Mele Kyari.
After meeting with the National Working Committee of the governing All Progressives Congress, APC, Mr. Kyari revealed this in a press conference.
The NNPC GMD added that eventually, NNPC won’t be the only importer of fuel in Nigeria, despite the fact that one of the country’s refineries will start operating this year and lower the cost of importing fuel.
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“A flexible, single-effect regime is currently being created gradually. The transition to having universal access to foreign exchange is currently underway. NNPC cannot remain the only importer indefinitely. This will disappear, and the market will stabilize it, we are aware of this.
One of the refineries will start operating this year as part of an ongoing rehabilitation process. The second will begin to operate this year, and the third will start in 2025.
It is obvious that we can no longer afford it, of course. Subsidy bills have accumulated. The nation is unable to reimburse the NNPC for the subsidy money that is being spent. Therefore, the appropriate course of action at this time is to price this Petroleum at the market. In the long run and over time, we think this will be advantageous for the entire nation,” Kyari said.
He further stated that there was no funding for subsidies under the most recent administration.
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In 2022, there was a subsidy, but in 2023, not a single naira was made available to pay for it.
Despite delaying our fiscal obligations, we still have a net balance of more than N2.8 trillion that the federation ought to have returned to the NNPC.
“Any company that has negative N2.8 trillion cannot have receivables because no company in all of Africa will lend to you,” said Kyari.
