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No More Fuel Subsidy – Kyari

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari has revealed that for the first time in many years, the habitual government subsidy which is also referred to as under-recovery on petroleum products is now ZERO. He added that there will be no resort to either subsidy or under-recovery of any nature and that NNPC will just be another player in the market space. “But we will be there for the country to sustain security of supply.”

Speaking today in a morning breakfast show on AIT, MoneyLine, the GMD stated that “as an Industry, we must come together to support this country that has given us the opportunity to explore, produce and sell oil. That’s the least that this country expects of NNPC and its partners in the Upstream, Downstream, IOCs and LOCs.

“NNPC is probably the only company in the whole world that publishes its monthly financial and operational reports. And we are very proud to do this. We can guarantee all Nigerians that we shall remain transparent and accountable in all our transactions,” Kyari added.

It would be recalled that global oil price crash has dealt the country a blow with record lowest price seen in decades, setting Saudi Arabia and Russia in a price war that attracted an emergency OPEC meeting earlier scheduled for today but shifted to Thursday this week.

“Today, we have a very robust products supply and distribution from the loading depots up to fuel stations nationwide. We also have very good understanding with our strategic partners: the governors, marketers, depot owners, PTD, etc. There are no issues whatever.”

Speaking further during the programme which was anchored by Nancy Illoh via skype, Mallam Kyari said “as at today, the first time in many years, the country’s production has risen to 2.3mbpd, stressing that the country’s aspiration is to grow production to 3mbpd. “We believe this will grow and the contribution of local companies in this regard will be meaningful.

“The key issue in crude oil business is market fundamentals of demand/supply. I believe COVID-19 will subside and countries will come back to life. I don’t see oil price going below the $20 we saw last week. I’m certain, all things being equal, oil price will bounce back.”

The GMD who also spoke on the oil companies’ donations of N21b towards the containment of the dreaded global pandemic Coronavirus in Nigeria, said “COVID-19 is a global issue and we are not insulated. The most important thing for any nation here is the health of its citizens. NNPC and its partners in the Industry considered it necessary to intervene.

“On our part as NNPC, we have delivered medical equipment, ambulances and make-shift laboratory, etc, in the FCT. Also, as JV or PSC partner to all the other industry donors, we have some stake (at least 57%) in their contributions. Overall, our support is all-encompassing.”

The GMD further clarified that “there will be no any duplication between what we’re doing and what the private sector is doing to tackle the COVID-19 Pandemic in Nigeria.

“The Secretary to the Government of the Federation (SGF), co-ordinates all the intervention efforts and I can assure you there will be no duplications.

“Our intervention will be used for three things: 1) provisions of immediate medical consumables 2) logistics support e.g. ventilators and hospital beds and 3) health infrastructure like isolation centers and laboratories,” Mallam Kyari stated further.