In a significant move, the Nigeria National Petroleum Company (NNPC) Limited has expressed its support for the decision made by the new administration to abolish petrol subsidy payments.
President Bola Tinubu, in his inaugural speech on Monday, announced the termination of the costly subsidy payments, triggering a resurgence of queues at filling stations in some parts of the country.
The Independent Petroleum Marketers Association (IPMAN) attributed the sudden queues to the announcement by President Tinubu, suggesting that panic buying had ensued.
However, speaking at a press conference shortly after, Mele Kyari, the Group Chief Executive Officer (GCEO) of NNPC, commended the decision to end the subsidy on premium motor spirits (PMS).
Kyari highlighted that the subsidy cost had placed a significant burden on the ongoing operations of the national oil company. He revealed that the NNPC had been funding the subsidy from its cash flow, as the government had been unable to bear the costs.
The GCEO expressed confidence that this move would free up resources for the NNPC to continue its crucial work for the country, enabling it to function as a highly commercial entity devoted to national development.
Addressing concerns about fuel availability, Kyari reassured Nigerians that there was an ample supply of petroleum products, particularly premium motor spirit, in the country.
“We would like to assure Nigerians that we have a sufficient supply of petroleum products, particularly premium motor spirit in our country. And there is no reason to panic.
“We understand people will be scared of potential changes to the price of petrol, but that is not enough for people to rush to fuel stations to buy more than what they need,” Mele Kyari said
Furthermore, Kyari assured the public that the NNPC was closely monitoring all distribution networks and support facilities. He expressed optimism that normalcy would be restored soon and the queues at filling stations would dissipate.
The previous administration, led by former President Muhammadu Buhari, had planned to discontinue under-recovery payments from June 2023 following a subsidy budget of N3.35 trillion in 2022. As part of its post-subsidy palliative plans, the federal government recently announced securing $800 million from the World Bank on April 5.
With the NNPC lending its support to the government’s decision and assuring Nigerians of sufficient fuel supply, it is expected that the situation will stabilize in the coming days, alleviating concerns over the impact of the subsidy removal on the country’s energy sector.
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