TUE, MAY 30 2023-theGBJournal |The Group Chief Executive Officer, NNPC Limited, Mele Kyari says the Group welcomes the decision of President Bola Ahmed Tinubu to announce that the subsidy on Peremium Motor Spirit (PMS or Petrol) is over, noting that the subsidy has been a major challenge for NNPC’s continued operation.
Kyari, while a addressing a press conference Monday added that the Group has been funding the subsidy from the cash flow of the NNPC since the Federal Government is unable to defray the cost of subsidy that is due to the corporation.
”We believe that this will free resources for the NNPC to continue to do the great work that this company will do for our country and it allows us to continue to function as a very commercial entity. We welcome this development,” he said.
He also assured Nigerians amid the sudden reappearance of fuel queues around the country, that the corporation has sufficient supply of petroleum products, particularly PMS in the country and there is no reason to panic.
”We understand people will be scared of potential changes to price of petrol. But that is not enough for people to rush to fuel stations to buy more than what they need,” he said while seeking to calm nerves.
He said the corporation is watching all the distribution networks and support facilities and believes that this would restore normalcy very soon.
The queues surfaced Monday shortly after Nigeria’s new President, Bola Ahmed Tinubu announced he is scraping the contentious fuel subsidies during his inaugural speech in Abuja.
”it can no longer justify its ever-increasing costs in the wake of drying resources. We shall instead re-channel the funds into better investment in public infrastructure, education, healthcare and jobs that will materially improve the lives of millions,” the President said while announcing the removal of the fuel subsidies.
Fuel subsidies which has been suppressing the economy, cost Nigeria $10 billion alone in 2022.
Economists, the World Bank and the International Monetary Fund (IMF), Nigeria’s big lenders have always harped on the removal of the subsidies because it forces Nigeria to borrow what it does not have to borrow.
Twitter-@theGBJournal|Facebook-the Government and Business Journal|email:gbj@govbusinessjournal.com| govandbusinessj@gmail.com
