The Minister of Budget and National Planning, Abubakar Bagudu has explained that Nigerian National Petroleum Company Limited, NNPCL, is using fuel subsidy savings to sustain the product’s current pump price.
The minister made this known on Channels Television on
Saturday, noting that Nigeria’s 2024 budget did not have an arrangement for
fuel subsidy.
When asked about the amount saved from fuel subsidy since
its removal in June 2024, he explained that NNPCL’s contribution has been affected
because fuel import outweighed the pump price sold to Nigerians.
“That is the issue. If NNPCL is supposed to contribute the most it cannot contribute because I have to use the money to import fuel. NNPCL is obligated to provide energy security. Consequently what they are to provide is affected,” he said.
This comes amid uncertainties surrounding the government’s
fuel subsidy payment despite its removal in June 2023, which led to the
increase in the product pump price to above N600 per liter from N238.
One of the demands of the ongoing
hunger protests, tagged #EndBadGovernance is the return of fuel subsidy.
The protest, which entered Day 3 on Saturday, is expected to
last for 10 days.
Speaking on the protesters’ demand, the minister said the
government is listening to Nigerians and making reforms in line with the
yearning of the people.
When asked if NNPCL had remitted funds to the Federal
Government, he said, “I am not aware. Not necessarily, the Accountant-General
should know. I will be surprised if they have done so.
“Let’s face it, you told somebody to import fuel and he says
the cost of import is higher than the cost of the product being sold.
“We have the NNPCL, the Petroleum Industry Act makes its
private liability company and at the same time mandated it with energy
security. So only NNPCL can say this is the price fuel is arriving in Nigeria.
“And if it is selling below that price, then obviously it is
an NNPCL issue. It means it is NNPCL that is taking the loss. We don’t have the
provision for fuel subsidy. That is not to say that NNPCL is not suffering a
loss as a result of the difference between the landing cost and what it is
being sold.
“President Tinubu is listening to Nigerians so that we do
things differently.”
Recall that the Major Energy Marketers
Association of Nigeria announced that the landing cost of fuel stood at N1,170
per liter. Meanwhile, depending on the location, fuel is between N617 to N850
per liter.
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