Insists Nigeria can no longer sustain subsidy regime

The group chief executive officer (GCEO) of Nigeria National Petroleum Company Limited (NNPCL), Mele Kyari, has disclosed that President Bola Tinubu has ordered the putting in place of palliatives to cushion the effect of removal of fuel subsidy on Nigerians.

He also insisted that there was no going back on subsidy removal, as it was quite apparent that Nigeria can no longer afford the subsidy payment.

The NNPCL boss, who disclosed these after meeting behind-closed doors with members of the National Working Committee (NWC) of the ruling All Progressives Congress (APC) at the party’s national secretariat in Abuja on Thursday, said the NNPCL won’t continue to be sole importer of oil in the country.

Kyari stated: “There is a gradual process now of making a flexible and single effect regime. Everyone will be able to have access to foreign exchange and there is a transition going on now.

“And NNPC cannot continue to be sole importer. We know that this is going to vanish and the market will stabilise this.”

Kyari also confirmed ongoing rehabilitation of the nation’s four refineries, saying one of them will start operations this year.

“There is an ongoing process of rehabilitation and one of the refineries will come on stream this year. The second will come on stream next year and the third will come in 2025,” he stated.

Noting that the country can no longer sustain the subsidy regime, the GCEO said subsidy bills have piled up.

He stated: “The country is not able to settle NNPC for the money we are spending on the subsidy. Therefore, pricing this petroleum at the market is the right thing to do at this time. We believe that this will benefit the overall country in the long run and in a long term.

“I am aware that Mr President has directed some engagement and some palliatives will be put in place, and I am very sure this will happen.”

Kyari further said while there was provision for subsidy in 2022, not a single Naira was provided to finance the subsidy in 2023.

He continued: “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. So, it doesn’t exist.

“So we no longer can bear it because of liquidity. 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 sub-nationals. Your lenders will come back to you and say your country can no longer pay.”[/b]

On the benefits of subsidy removal, Kyari said when President Tinubu declared in his inaugural speech that subsidy was gone, the bond market appreciated within 24 hours.

Tinubu’s target, he pointed out, was to have 7 per cent growth of GDP, which he said cannot be achieved if there is distortion in demands and consumption patterns.
He added: “It is nothing else other than the statement around subsidy and balancing of the apex market. These two elements are major concern that every investor all over the world, every partner that we have is worried about. What is your apex regime and how do you deal with your subsidy?

“They know that this subsidy constitutes a huge amount of money and this country may not be able to survive and pay its debts. It is very clear that everybody understands this.

“Before today, the average subsidy level was N400 billion every month. That means every month you can do one major capital project from money that you do not have. This is really what it means. There is nothing anybody can do about it. There is this common argument that the masses will suffer.

“That we are going to have problems with them. I agree. That once you increase prices of this proportion, as it has happened, it will have impact on inflation. There is no doubt about it. It is very typical also, It goes up and down. The market determines what happens next.”

https://leadership.ng/tinubu-has-ordered-palliatives-to-cushion-effects-of-subsidy-removal-kyari/

You don give woman bele already now you wan use condom knack am..

Palliative for his family and friends

Looting don start under 3 days
God abeeegggg

God bless Asiwaju Bola Ahmed Tinubu. My President carry on!

kokoA:
You don give woman bele already now you wan use condom knack am..

I tire o

There's nothing we no go see under this bulaba government

Palliatives like 2020. Rogues

It's even irritating that these APC apologists called Tinubu a master strategist.

A master strategist who removed subsidy before considering palliatives that his cronies will still loot!

And what are those palliatives sir?

I think Kyari thinks every Nigerian reasons like the part of Nigeria he comes from. Use whatever palliative you may give to subsidize fuel. It encourages people to be productive and not to rely on government handout.

BlackAdams007:
Government palliative always com6e in quickly to broadcast but i have never seen or received such we only here of it, as if we are not part of the country, it all goes to family and fellow big men of their calibre.

Free advice, don't expect palliatives in form of hand outs. I would expect it in form of affordable mass transit for the poor and something along that line. I hope Tinubu knows better to not give hand outs.

There is no specification on the palliatives for the masses and why is it that Kyari is the one announcing this?

This one Sha doing everything to stay in position. Been seeing him in all recent news

Dynamicboss:
There is no specification on the palliatives for the masses and why is it that Kyari is the one announcing this?

He is about to be replaced ofcuz🤣🤣😂😂🤣

Better my president. We support you because for you it's always the masses first

Huge corruption in this plans to doled out palliatives to Nigerians. O Lord my father, help to succeed in this Tinubu era.

Dynamicboss:
There is no specification on the palliatives for the masses and why is it that Kyari is the one announcing this?

People must wail. Kyari is at the main center of all these, like Emefiele was at the center of naira redesign. Did Nigerians not wait endlessly for Emefiele to at least tell them to accept and spend the money? Here's someone that's active and proactive but your wailing programmed self will still look for a pattern to wail with

Palliatives that will never be delivered?

Why can't the President address the citizens...we have started again.

Seefinish:
And what are those palliatives sir?

ewa,garri and agbado

Anyone that believes this palliatives and refineries rehabilitation talks is being fooled big time. It's the usual talks just to calm Nigerians and overtime everyone forgets the cry and bear the pains. ...normal political strategy! Expect nothing from Nigerian politicians, they have thrown Nigeria into a very active volcano waiting to erupt hot magma 🔥. Unfortunately, our military who is supposed to be our side watchdog/mouth piece for checks and balancing has been systematically put under their armpit.

President Tinubu, best man for the job

WAILING WAILERS.

Are you going to be this till 2031
From Buhari's 8 years plus Tinubu's

You all should get a life

Mystic216:
Palliative for his family and friends

SoNature:
It's even irritating that these APC apologists called Tinubu a master strategist.

A master strategist who removed subsidy before considering palliatives that his cronies will still pocket.

press9jatv:
Huge corruption in this plans to doled out palliatives to Nigerians. O Lord my father, help to succeed in this Tinubu era.

bhella10:
God bless Asiwaju Bola Ahmed Tinubu. My President carry on!

Let's remove ethnic or tribal politics here and think about how nigeria can get better. Do you want to sell the future of your kids all because of a politician who doesn't even give a hoot about you or your family is from your tribe?

This one is another scam, you are giving palliative to people that trek to work, why not increase their salaries. I pity those working under private sector most especially private schools teachers, honestly this country has turn to hell, all thanks to APC. We just recover from cashless policy now another suffering has been set on rolling. For good 8yrs they were not able to make one refinery to work rather they jumped to commission the refinery a single man built.

They will be shocked at what is coming

Is this news supposed to be disclosed by Mele Kyari?

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Okay

Audio palliatives as usual.

You mean cassava, garri, EWA?

Fools everywhere!

The election tribunal should hurry up and restore Obi's stolen mandate ASAP. Nigerians are missing Buhari already

Those that hire fake bishops can do anything