Subsidy Removal: President Tinubu Will Fix One Of Nigeria’s Refineries By December, Says National Petroleum Company, NNPCL Boss, Kyari

Mele Kyari, the Group Managing Director of the Nigerian National Petroleum Company Limited (NNPCL), has said that President Bola Tinubu’s government has concluded arrangements to fix one of the country’s refineries and put it into an optimal level of operation by December.

The NNPCL boss made this known on Thursday when he visited the National Chairman of the ruling All Progressives Congress (APC), Senator Abdullahi Adamu, at the party’s secretariat in Abuja for a meeting.

The Punch reports that Kyari, who arrived at the secretariat premises at about 12.30 p.m., was warmly received by Adamu and members of the APC National Working Committee.

Kyari while addressing journalists after the meeting explained that following the current hikes in fuel pump prices across the country and the resultant effect on transport fares, Tinubu is working out some palliative measures to ease the pains of Nigerians.

He added that there is an ongoing process of rehabilitation to ensure one of the four refineries is ready by the end of 2023.

He said, “I’m aware that Mr president has directed some engagements and some palliatives will be put in place. I am very sure this will happen. There is an ongoing process of rehabilitation. One of them will come this year, the second one will come on stream next year and then the third will follow thereafter.

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

“Therefore, pricing this petroleum at the market price is the right thing to do at this point in time and I believe it would benefit the country in the long term.”

Tinubu while announcing the removal of fuel subsidy during his inaugural speech on Monday noted that the Nigerian government was struggling to fund subsidies.

The announcement of fuel subsidy removal has triggered over 100 percent hikes in fuel pump prices across the country, even at fuel stations managed by NNPCL.

The NNPCL chief managing director on Thursday also said that the country can no longer sustain such an expensive regime, adding that over 38 percent of the total fuel distributed in Nigeria is consumed by three states and the Federal Capital Territory. The states are Lagos, Kano, and Rivers.

Kyari said, “There was subsidy in 2022 but in 2023, not a single naira was provided for the purpose. And ultimately while 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. It doesn’t exist.

“We can no longer bear it. If we continue, we will run into defaults and the defaults of NNPC is the default of Nigeria. Once NNPC goes into defaults and liquidity, it affects every borrowing done by the country. Even the subnational. Your lenders will come back to you and say your country can no longer pay.”