20.6 C

NNPC can’t continue paying N120bn monthly as petrol subsidy – Kyari


1min read

THE Nigerian National Petroleum Corporation (NNPC) says it pays N120 billion every month to subsidise Premium Motor Spirit (PMS), also known as petrol.

NNPC group general manager (GMD) Mele Kyari disclosed this at the weekly presidential ministerial media briefing on Thursday at the State House in Abuja, the nation’s capital.

He lamented that the burden placed upon NNPC by the ongoing subsidisation of the cost of petrol in the country was overwhelming.

Read ALso: Why Nigerians should anticipate increase in petrol’s pump price despite assurances from NNPC

As a result of the huge sum being paid, Kyari stated that Nigerians would have to pay the actual cost for petrol sooner or later.

He noted that the product was currently being sold below the cost of importation, causing the NNPC to pay the difference.

The NNPC boss, however, refrained from calling the shortfall payment a subsidy, stressing that the fund was paid to maintain the pump price of petrol at the current level.

He stated that the NNPC could no longer bear the monumental cost, saying that market forces must be allowed to determine the pump price of petrol in the country in the nearest future.

- Advertisement -

When asked when the corporation would stop subsidising petrol, Kyari declined to give a specific date.

Minister of state for petroleum resources Timipre Sylva also gave an update on happenings in the nation’s petroleum sector.

He disclosed that the Petroleum Industry Bill (PIB) currently before the National Assembly would be passed by April 2021.

Sylva told reporters that the bill would not suffer a setback, going by all indications from the leadership of the National Assembly.

He stressed the importance of Nigeria steering away from oil to gas, adding that the 20-year-old PIB would attract a lot of investments to the gas sector.

On the issue of having functional refineries in the country, Sylva faulted Senator Dino Melaye’s analysis of the proposed rehabilitation of the Port Harcourt Refinery.

FG spends over N50bn monthly on electricity subsidy -Power minister

- Advertisement -

According to him, Melaye was not an expert on refinery and should, therefore, not impress his views on an area he was not conversant with.

The minister said the federal government remained committed to its promise to deliver a functional refinery to Nigerians in due time.

Vincent Ufuoma is a reporter with The ICIR. He is a lover of God, truth, knowledge and justice.

If you or someone you know has a lead, tip or personal experience about this report, our WhatsApp line is open and confidential for a conversation



Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Support the ICIR

We need your support to produce excellent journalism at all times.


Malami denies release of Boko Haram sponsors

NIGERIA’S Attorney-General Abubakar Malami has denied releasing suspected sponsors of the Boko Haram terrorist...

How $1.2m bribe paid to NNPC was used to finance Jonathan, Buhari’s elections

COURT testimonies arising in lawsuits in London and New York have revealed how a...

Nigeria’s transportation cost rises amid shrinking household wallets

IN August, the cost of transportation rose by an average of five per cent...

Despite contradictory evidence, Buhari hails his govt’s human rights records at UN General Assembly

NIGERIAN President Muhammadu Buhari, in an address during the General Debate of the 76th...

NYSC backtracks, admits asking corps members to prepare for ransom payment if abducted

AFTER an initial denial, the National Youth Service Corps (NYSC) has admitted to asking...

Most Read


Subscribe to our newsletter