The Group Chief Executive Officer of Nigerian National Petroleum Company (NNPC) Limited, Mallam Mele Kyari has described President Bola Tinubu’s decision to end the fuel subsidy regime as a welcome development.
Kyari said this in while briefing journalists in the NNPC Towers, Abuja on Monday night.
Hours earlier, Tinubu, at his inauguration as the President, said the subsidy regime would end with the commencement of his administration.
Kyari noted that the subsidy regime has been a burden on NNPC Limited’s cash flow, noting that its removal would free up funds to enable optimal operations within the company.
“Subsidy has been a major challenge for NNPC’s continuous operations. We believe that this will free up resources to enable us continue to do great work and function as a commercial entity, we welcome this development,’’ the NNPC GCEO said.
Reacting to queues and scarcity already being experienced since the president’s announcement, Kyari assured Nigerians of a sufficient supply of products particularly petrol, adding that the company has over 30 days of petrol storage and supply.
“There is no reason to panic, we understand that people will be scared of potential changes in price of petrol, that is not enough for people to rush to buy more than they need,’’ he stated.
He however appealed to Nigerians not to be scared or indulge in panic buying.
The GCEO added that the company as the supplier of last resort as mandated by the Petroleum Industry Act (PIA) would continue to ensure the availability of petrol and other petroleum products.
According to him, NNPC Ltd. is also monitoring all its distribution networks to ensure compliance.
“The NNPC Ltd. is in discussion with the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to develop framework for the implementation of the removal of the PMS subsidy as announced by the president,” Kyari said.
Recall that that former President Muhammadu Buhari set June 2023 as the date for the removal of fuel subsidy.
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