State owned oil company, the Nigerian National Petroleum Company (NNPC) Limited, on Tuesday said it needed N4.27 trillion to meet its subsidy requirements. <\/p>\n
It stated that the said fund will help in tackling the lingering fuel scarcity nationwide. <\/p>\n
The Group CEO, NNPC, Mele Kyari, made the disclosure in an interview on The 2023 Verdict, Channels Television\u2019s special election programme. <\/p>\n
He disclosed that the the NNPC transfers products to oil marketing companies at N113 per litre to establish a market price of N170.<\/p>\n
\u201cThat was one year ago. That\u2019s the basis of all the estimates,\u201d he explained. <\/p>\n
According to Kyari, there are some adjustments that have \u201cbrought us to the reality of the cost of vessels.\u201d And that adjustment, he said, took the NNPC to a different level in terms of the logistics.<\/p>\n
He stated that NNPC has been unwavering on the transfer price from the \u201clanding location\u201d to the marketing companies.<\/p>\n
\u201cYesterday\u2019s data is that this product will land in this country at N295 to the litre. That means you have to sell it at N113 to the marketing companies so that we will be able to maintain the current subsidy regime that we\u2019re running,\u201d Kyari said.<\/p>\n
\u201cIt means you have N185 per litre of subsidy on every product that comes into this country.<\/p>\n
\u201cNow, if you look at the average that we\u2019ve done of 63 million litres January to date, and you convert it to 365 days, that means you need N4.27 trillion for you to meet the subsidy requirements for this country.\u201d<\/p>\n
With the NNPC as the country\u2019s only importer of petroleum products, he said the law provides for N3.36 trillion for the January-to-June subsidy regime.<\/p>\n
\u201cThat means technically, the Ministry of Finance is supposed to be giving us cheques against this subsidy value on a monthly basis,\u201d Kyari stated.<\/p>\n
\u201cBut it\u2019s not a real situation in the sense that we\u2019re a company owned by the state today. We have fiscal obligations because, ultimately, whatever money NNPC makes is from fiscal obligations \u2013 taxes, royalties and margin.<\/p>\n
\u201cBecause we have not diluted the ownership of this company, all three belong to the state today. So, the only way NNPC can do this is to hold back the fiscal obligation, so that we can use that to buy the product and come and sell it to the market.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
State owned oil company, the Nigerian National Petroleum Company (NNPC) Limited, on Tuesday said it needed N4.27 trillion to meet its subsidy requirements. It stated that the said fund will help in tackling the lingering fuel scarcity nationwide. The Group CEO, NNPC, Mele Kyari, made the disclosure in an interview on The 2023 Verdict, Channels […]<\/p>\n","protected":false},"author":39,"featured_media":213559,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"source_name":"","source_url":"","via_name":"","via_url":"","override_template":"0","override":[{"template":"custom","single_blog_custom":"211693","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"single-left","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"floatbottom","share_float_style":"share-monocrhome","show_share_counter":"1","show_view_counter":"1","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"0","post_reading_time_wpm":"300","show_zoom_button":"0","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","show_prev_next_post":"1","show_popup_post":"0","number_popup_post":"1","show_author_box":"0","show_post_related":"0","show_inline_post_related":"1"}],"override_image_size":"0","image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post":"0","trending_post_position":"meta","trending_post_label":"Trending","sponsored_post":"0","sponsored_post_label":"Sponsored by","sponsored_post_name":"","sponsored_post_url":"","sponsored_post_logo_enable":"0","sponsored_post_logo":"","sponsored_post_desc":"","disable_ad":"0"},"jnews_primary_category":{"id":"","hide":""},"jnews_override_bookmark_settings":{"override_bookmark_button":"0","override_show_bookmark_button":"0"},"jnews_override_counter":{"override_view_counter":"0","view_counter_number":"0","override_share_counter":"0","share_counter_number":"0","override_like_counter":"0","like_counter_number":"0","override_dislike_counter":"0","dislike_counter_number":"0"},"footnotes":""},"categories":[2],"tags":[12008,3344,1193,3786],"class_list":["post-247410","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","tag-fuel-scarcity","tag-kyari","tag-nnpc","tag-subsidy"],"yoast_head":"\n