The Federal Government will divert N 457bn provided for petrol subsidy in the budget to other sectors of the economy , the Group Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari , has said .
He also disclosed that the corporation would not be involved in running refineries after they must have been rehabilitated.
Kyari, who spoke in a live television programme monitored in Abuja , noted that Nigeria was subsidising fuel consumption in other West African countries.
For this , he added, fuel subsidy must go for ever .
He said , “ And above all, you have a huge economic distortion where people don ’ t pay for what they consume .
“ That means that you have the cross - border issues , which is because you are selling fuel at a lower price than the market price and we are therefore practically supplying fuel to the whole of West Africa .
“ And because of that distortion, some people don ’ t get salaries . The minimum wage is not implemented in some parts of the country and there are so many distortions .”
On the amount already budgeted as under - recovery in the 2020 budget , Kyari said it would vanish.
He said , “ No deduction for under - recovery because there will be none . Obviously , those costs will vanish from the Appropriation Act and while that is done , it becomes available for other sectors of the economy .
“ There are so many things that the cost of under -recovery has prevented us from doing . We are supplying the whole of West Africa and so the under -recovery is bloated so much because you are actually subsidising West Africa . ”
The NNPC boss explained that the downstream oil sector would still need a regulator despite the halt in subsidy.
This, he said , would ensure that people were not exploited by the market , as it would provide a band of prices within which marketers would sell.
“ What we are putting in place today is a situation where market forces will take control of the market instead of subsidising products mainly for the elites across the country ,” he stated .
He also insisted that there would be no conversation about coming back to the fuel subsidy regime anymore , stressing that the PPPRA would modulate prices and provide a band going forward .
Kyari noted that the current band was N 123. 5/ litre to N 125/ litre, which was why some filling stations still sell petrol at N125/ litre despite the new price announced by the PPPRA on April 1, 2020 .
He , however , stated that once market forces set in fully, marketers would adjust and consumers would have choices.
“ Ultimately, the band keeps moving. It can go down or up but it will create space for competition and you could see people selling below the band , especially those who have excellent procurement processes, ” the GMD stated .
He explained that the band would always be narrow, as it could be between plus or minus N 3.
On complaints by marketers that stakeholders were not carried along before the decision on subsidy removal was taken , the NNPC boss stated that the situation did not warrant the involvement of other players since NNPC was the sole importer of petrol into Nigeria.
In another interview, the NNPC said that the corporation would no longer be involved in the management of the nation ’s refineries after their rehabilitation .
He stated that upon completion of the ongoing rehabilitation exercise , the services of a company would be procured to manage the plants on an operations and maintenance basis .
“ We are going to get an O &M contract , the NNPC won’t run it. We are going to get a firm that will guarantee that this plant would run for some time. We want to try a different model of getting this refinery to run . And we are going to apply this process for the running of the other two refineries, ” he stated .
He explained that the plan, ultimately , was to get private partners to invest in the refineries and get them to run on the NLNG model where the shareholders would be free to decide the fate of the refineries going forward .

source : https://punchng.com/fgll-divert-n457bn-petrol-subsidy-to-other-sectors-nnpc/

It is a looting time for them.

I don't know why I'm not always comfortable whenever I see our FG use the word 'DIVERT' it always make me feel money is changing hands...

I thought this man was dead.
Oh! It's the wrong Kyari. Corona, take note.

So there was actually something called subsidy!

Don't be surprised they find another name for it tomorrow to perpetuate the sleaze.

As long as we aren't refining our crude oil locally, we'll still be paying all of these phoney bills.

More like divert the N457billion into their pockets. But good move. There's so much corruption in the upstream and downstream oil sector.

OK naww

I thought it was ABBA Kyari. Mscheeeeeeeew

seems like Buhari is paying back to kyari family in kind, this one kyari exists in almost all the money making sections in Nigeria.

Govt of professional crooks.How many times will they be saying this nonsense.What do they take reasonable Nigerians for?

After lying shamelessly of not paying subsidy even calling it subsidy/under-recovery bullcrap? All is corruption.Same thing other govt did & they criticized.For always attempting to lie to Nigerians, they make themselves more stupid.

Imagine.

Is he part of government?

Divert you said?

clevvermind:
It is a looting time for them.

As you can see my brother

God will judge Nigeria government real soon.. And I'm waiting to hear from our Chinese doctors.. I'm very sure they are all here because of our zombie bubu..

Kyari are they brothers

The Real Headline:FG WILL DIVERT N457 BILLION PETROL SUBSIDY TO INDIVIDUAL POCKETS!

No need to be lying to us anymore,we’v had enough of your lies

GreenArrow1:
I thought this man was dead.
Oh! It's the wrong Kyari. Corona, take note.

Learn to read before comment brother.

Yes. The federal government will DIVERT it indeed!!

The last time you people told us that you were removing fuel subsidy when you guys increased fuel to N145, what did you use the money that was saved from there for?

valentineuwakwe:


source : https://punchng.com/fgll-divert-n457bn-petrol-subsidy-to-other-sectors-nnpc/

Everybody come out ooo...
Another Kyari's family member surfaced in Buhari's govament

Nice

Okay

This administration remains the worst thing to have happened to Nigeria.

Oga please tell us another story. This story is stale

Osinbajo said the same
Lai said same
Kaichukwu said same
Buhari said same

This joke is becoming old. Come up with a new one

sexyking1:

Learn to read before comment brother.

Pun was intended chief.

How much could be diverted to other pockets

Ok..una matter don tire us jare.

So we read

I hate nothing in this earth more than Nigerian politicians..they are part of the angels that accompanied devil to the earth.

jayson87:
Oga please tell us another story. This story is stale

Osinbajo said the same
Lai said same
Kaichukwu said same
Buhari said same

This joke is becoming old. Come up with a new one

Reality is that 99% of Nigerians will share this thought

What baffles me is why the remaining 1% will think things will be different this time around

No body talks about people's welfare in this country. FG should create an Avenue where people can at least get something at the end of each month to aid themselves.