The Group Chief executive officer of the Nigerian National Petroleum Company Limited, NNPCL Mele Kyari has announced that the Federal Government is currently owing the company 2.8 trillion naira spent on subsidy payment in the last three years and must be compensated for it.
Addressing state house correspondents, Kyari described the President’s action as a commendable step because the country does not have the money to pay for subsidy.
He further explained that the continuous support of subsidy from the company’s cash flow has created huge challenges in the company’s operations.
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Again the NNPCL GMD noted that they are convinced that the country can no longer fund the subsidy and will take necessary steps to recover their cost from the market.
He says he is also not oblivious of the exploitation of customers can arise from the subsidy removal, and they are working with regulators to address any excessive move.
Meanwhile, the Chief Executive of Nigerian Mainstream and Downstream Regulatory Authority, Faruk Ahmed, reassured that with the removal of subsidy, there will be no price cap on the sale of petroleum products in the country, as he called on all marketing companies to open up market.
(Editor : Ena Agbanoma)
