The Group Managing Director (GMD) of Nigerian National Petroleum
Corporation (NNPC) Mele Kyari says the stoppage of fuel subsidy among
other reasons will benefit the ‘ordinary man’ as monies will be freed up
to fund critical infrastructural projects.
Kyari disclosed this on Wednesday while speaking on Channels Television
breakfast programme, Sunrise Daily.
He also noted that it is only the elites that benefit from fuel subsidy
and this is a huge economic disruption.
“The stoppage of subsidy or under-recovery payment will ensure monies
are freed up for the government to fund critical infrastructural
projects such as education, health, roads and many others for the
benefit of the ordinary man.
“We decided that the fuel subsidy has to be stopped. In any case,
subsidy is an elitist thing because it is the elites (including me) that
benefit from fuel subsidy. They are the ones that have SUVs, four, five
cars in their houses. The masses should be the ones to benefit,” he
said.
The NNPC boss also highlighted some disadvantages of fuel subsidy.
“There are many things wrong with the under-recovery because we are
supplying more than we need; we are supplying the whole of West Africa.
Therefore the under-recovery itself is so over-bloated because we are
subsidising the whole of West Africa. This has to stop,” he said.
Kyari also revealed steps taken by NNPC in contributing to the fight
against the COVID-19 pandemic in Nigeria.
According to him, NNPC has made a commitment worth N21billlion to the
intervention scheme of the Federal Government.
“The Nigerian government has subsidised fuel for decades. Experts in
response have called for total deregulation of the oil sector while
others have opposed it, saying poor Nigerians may not be able to afford
the products if the prices were not regulated and subsidised”, he added.