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Remove Subsidy Now – NNPC tells Jonathan

By on May 29, 2012

The Nigerian National Petroleum Corporation (NNPC) has called on the President to remove the entire fuel subsidy in order to fully deregulate the petroleum industry in the country.

The General Manager of the NNPC, Levi Ajuonuma told Punch newspapers that the Federal Government does not see prepared to fund the subsidy regime and should remove the entire fuel subsidy.

He said, “Without apology to anyone, the Federal Government should embark on full deregulation if it does not want to fund subsidy. Politicians and the Nigerian Labour Congress should stop playing politics with this issue.

“If they don’t want to continue to fund subsidy, does that mean that they should not pay those that have already rendered service? The Ministry of Finance set up a committee to verify the arrears. By setting up the committee, what they were saying was that they would pay when they verify that the debts were genuine. So, why did they stop the payment altogether?”

He also faulted the statistics which put the country’s consumption at 19 million liters per day, saying that it was grossly inadequate.

“We want to raise the alarm that we don’t have the capacity to handle the consumption needs of the country. The withdrawal of private operators from fuel importation is usually difficult for the country. NNPC can only meet 50 to 59 per cent of the nation’s requirement.

“This is why we have to raise the alarm. How can subsidy be based on 19 million litres per day? Take into consideration that the United Nations put the country’s population at 167 million. Also put into consideration the estimate of the number of cars in the country and you will know that 19 million litres are grossly inadequate.”