Mele Kyari, group managing director of the Nigerian National
Petroleum Corporation (NNPC), says the benefits of the fuel subsidy regime were
enjoyed by members of a cabal rather than the masses that it was targeted at.
Speaking during a Hausa programme on Liberty FM, Kaduna on
Sunday, Kyari said subsidy was removed because it was characterised by
fraudulent activities.
He explained that fuel subsidy was not beneficial to the
masses who are the original target beneficiaries, therefore the federal
government removed it with a plan to reinvest on projects that will have a
direct impact on the masses.
“The crude oil is a global commodity and its price is not
hidden, everyone can calculate and know how much is the cost of every final
product from the crude at the international market. But, since the inception of
oil importation, the government has been paying subsidy on petrol to make it
cheaper for Nigerians to buy below the cost price,” Kyari said.
“This subsidy is designed to assist Nigerians, that is the
intention. But in reality, the masses are not the beneficiaries. First, the
masses are not the owners of the exotic cars, buying fuel, owning the filling
stations, and doing the oil business.
“This subsidy that the government has been paying over the
years is the root of all the atrocities and fraud committed in this country.
“For example, if you look at it from 2006 till 2020, we have
spent over N10 trillion on fuel subsidy. Apart from that, there is also subsidy
on foreign currencies, everybody knows how much is dollar in the market, but
the government is also subsidising it. So, this and the fuel subsidy, within
this period, have gulped between N14 trillion and N15 trillion.
“It was not the masses of Nigeria that were enjoying this
subsidy, except some members of a cabal, who are rich and powerful. They were
enriching themselves with the subsidy money at the detriment of the masses who
were the primary target.”
Kyari explained that the money from subsidy payments can be
channelled to other areas of development.
“From this money, Nigeria has been able to pay workers’
salaries without retrenching despite the effects of the COVID-19 on the global
economy,” he said.
“In the whole of West Africa, it is only Nigeria that didn’t
retrench workers as a result of the pandemic. Apart from that, part of the
money will be used to support farmers and other business owners.”
The federal executive council approved that the NNPC should
no longer absorb the differential between the landing cost of the petrol and
the approved retail price.
Advertise on NigerianEye.com to reach thousands of our daily users
No comments
Post a Comment
Kindly drop a comment below.
(Comments are moderated. Clean comments will be approved immediately)
Advert Enquires - Reach out to us at NigerianEye@gmail.com