The Nigerian National Petroleum Company (NNPC) stands behind President Tinubu’s decision to eliminate fuel subsidy, emphasizing its positive impact on the company’s finances. The NNPCL assures Nigerians of an adequate supply of petroleum products, urging the public to refrain from panic buying. This move reflects the government’s commitment to financial prudence and the sustainable development of the nation’s energy sector.
- President Tinubu declares an end to fuel subsidy payment in his inaugural address.
- Nigerian National Petroleum Company (NNPCL) supports the decision, citing the financial burden of subsidy.
- NNPCL assures Nigerians of sufficient petroleum products and urges against panic buying.
In a significant development, the Nigerian National Petroleum Company Limited (NNPCL) has expressed its support for President Bola Tinubu’s decision to eliminate fuel subsidy. President Tinubu announced this decision during his inaugural address, highlighting that the 2023 budget does not allocate any funds for fuel subsidy, rendering further payments unjustifiable.
During an emergency press conference held at the NNPC Towers in Abuja, the GCEO of NNPCL, Mele Kyari, assured the nation that this move is in the best interest of the company. Kyari revealed that the NNPCL has been using a significant portion of its profits to subsidize the cost of fuel. By eliminating the subsidy, the company aims to improve its financial stability and operational efficiency.
Kyari also addressed concerns about fuel shortages, acknowledging the existence of queues in some areas of the Federal Capital Territory (FCT). However, he emphasized that there is no need for panic buying, as the NNPCL has ample fuel reserves to meet the country’s demand for the next 30 days. The company is closely monitoring its supply and distribution networks across the nation to ensure a smooth and uninterrupted flow of petroleum products.
This decision aligns with the Federal Government’s previous plans. Under former President Muhammadu Buhari, it was announced in January that fuel subsidy payments would cease by the end of June. The Minister of Finance, Budget, and National Planning at the time, Mrs. Zainab Ahmed, disclosed that the 2023 fiscal period had allocated N3.36 trillion for fuel subsidy payment, covering the first six months of the year. This extension of the subsidy aligns with the government’s earlier announcement in early 2022.