BREAKING: NNPC Speaks On ‘Going Back’ On Fuel Subsidy Removal

BREAKING: NNPC Speaks On ‘Going Back’ On Fuel Subsidy Removal

The Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mene Kyari, has said there is no going back on fuel subsidy removal because Nigeria can no longer afford subsidy.

Kyari spoke with newsmen after a short meeting with the APC National Chairman, Senator Abdullahi Adamu, at the party’s national secretariat on Thursday in Abuja.

President Bola Ahmed Tinubu shortly after his swearing-in last Monday as the 16th President of Nigeria announced the official removal of subsidy on fuel. But the policy is receiving bashing from Nigerians as the cost of living has become high.

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The APC National Chairman, Abdullahi Adamu, on Wednesday, said fuel subsidy removal by the federal government had posed a challenging moment to Nigerians and especially those in the states.

But Kyari said subsidy bills have piled up, stressing that the country is not able to settle NNPC for the money it is spending on fuel subsidies.

He, however, said President Tinubu has directed that palliatives be put in place to cushion the effect of the policy on the masses.

The NNPC helmsman said, “There was a subsidy in 2022 but in 2023, not a single naira was provided for the purpose of financing the subsidy. And ultimately, 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. The provision of subsidy is there but absolutely there is no funding for it. It means it is only on paper. So, it doesn’t exist.

“It is very obvious that we can no longer afford it. Subsidy bills have piled up. The country is not able to settle NNPC for the money we are spending on the subsidy.

“Therefore, pricing this petroleum at the market is the right ring to do at this time. We believe that this will benefit the overall country in the long run and in the long term. I am aware that Mr President has directed some engagement and some palliatives will be put in place. And I am very sure this will happen.”

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