Mele Kyari, Group Managing Director of the Nigerian National Petroleum Corporation, NNPC Limited, says he is aware of plans by Nigerian President Bola Tinubu to provide relief to citizens affected by the removal of fuel subsidies.
Mr. Kyari made the announcement to journalists following a meeting with the ruling All Progressives Congress’s National Working Committee.
While stating that one of Nigeria’s refineries will be operational this year, lowering the cost of importing fuel, the NNPC GMD also stated that NNPC will eventually cease to be Nigeria’s sole importer of fuel.
“A gradual process is now underway to create a flexible and single effect regime.” Everyone will have access to foreign exchange, and a transition is currently taking place. Furthermore, NNPC cannot continue to be the sole importer. We know that this will vanish and that the market will stabilize it.
“Rehabilitation is ongoing, and one of the refineries will be operational this year.” The second will be operational next year, and the third in 2025.
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“Of course, it is self-evident that we can no longer afford it.” Subsidy bills have accumulated. The country is unable to reimburse the NNPC for the money spent on the subsidy. As a result, pricing this Petroleum at the market is the best option at this time. “We believed that this would benefit the country as a whole in the long run and in the long term,” Kyari said.
He also stated that the previous administration did not provide any funds for subsidies.
“There was a subsidy in 2022, but not a single naira was provided to finance the subsidy in 2023.”
“Ultimately, even though we delayed meeting our fiscal obligations, we still have a net balance of over N2.8 trillion that the federation should have returned to the NNPC.”
“There is no company in Africa that will lend to you when you have negative N2.8 trillion, you cannot have receivables,” Kyari said.
