Mele Kyari, the Chief Executive of the Nigerian National Petroleum Company Limited (NNPCL), claimed on Tuesday that the federal government owes the company N2.8 trillion for fuel subsidy payments.
After his meeting with President Bola Tinubu at the Presidential Villa in Abuja, Kyari revealed this to State House reporters.
He affirmed that the subsidy is no longer viable because it prevents the company from having enough money to invest in its core businesses.
The NNPCL CEO characterised President Tinubu’s announcement that subsidies are no longer available as belated and claimed that the reason for the resurgent gasoline lines is that marketers want to understand the significance of the president’s statement.
He claimed that the remark’s uncertainty led to a rush on the product by customers, creating lines.
The NNPCL CEO gave a guarantee that the government would take action to mitigate the effects of the subsidy’s removal.
Faruk Ahmed, the Chief Executive of the Nigerian Mainstream and Downstream Regulatory Authority, stated that there will be no price cap on the sale of petroleum products in the nation once the subsidy has been eliminated.
President Tinubu’s declaration regarding the elimination of subsidies in his inaugural address, according to Ahmed, was legal.
In addition, he added, “the reality today is that government cannot afford it.” He stated that the Federal Government has not funded subsidies since 2022.
Additionally, he noted that ongoing discussions were taking place and emphasised that “today, the country does not have money to pay for subsidy.”
