shippingposition
  • Home
  • News
  • Editorial
    • Vox Pop
  • Maritime safety
  • Oil and Gas
  • Personality
  • Health
No Result
View All Result
shippingposition

Home » Fuel Subsidy Not Budgeted For In 2023 Budget – NNPC

Fuel Subsidy Not Budgeted For In 2023 Budget – NNPC

by Joshua
June 5, 2023
in Oil and Gas

Alhaji Mele Kyari, Group Chief Executive Officer, Nigerian National Petroleum Company (NNPC), has said that contrary to speculations, the immediate past government did not make provisions for petroleum subsidy in 2023 budget.

He said this in Abuja when he met with the Sen. Abdullahi Adamu-led APC National Working Committee (NWC) at the party’s National Secretariat.

“There was subsidy in 2022 but in 2023, not a single naira was provided for the purpose of financing the subsidy.

“And ultimately while we held back our fiscal obligations, we still have a net balance of over N2.8 trillion that the federation should have given back to the NNPC.

“For any company, when you have negative N2.8 trillion, there is no company in the whole of Africa that will lend to you, you cannot have receivables.

“The provision of subsidy is there, but absolutely there is no funding for it,” Kyari said, adding that it was only on paper and does not exist.

This, he said, was the true situation of things, adding the the Federal Government could no longer bear the burden of fuel subsidy.

“If we continue, we will run into defaults and the defaults of NNPC is the default of Nigeria.

“Once NNPC goes into defaults and liquidity, it affects every borrowing done by the country, even the sub-nationals. Your lenders will come back to you and say your country cannot longer pay,” he said.

The NNPC group chief executive officer added that subsidy constituted a huge amount of money which the country might not be able to survive and pay its debts.

Kyari, while admitting that Nigerians would have problems with the removal of fuel subsidy and that it would impact on inflation, assured that government was working on putting in place palliatives to cushion the effect.

According to him, President Bola Tinubu has directed some engagements and some palliatives will be put in place soon.

Kyari added that the market would stabilise with time following the removal of fuel subsidy and the current pump price when other players came in.

“There is a transition going on now and NNPC cannot continue to be sole importer. So, we know that this is going to vanish, the market will stabalise,” he said.

On when the country would have all its four refineries working, Kyari said there was an ongoing process of rehabilitation of the refineries.

He added that one of the refineries would come on stream before the end of 2023 while the second one would come on stream in 2024 and the third one would follow there after.

He maintained that the fuel subsidy regime was gone for good because government could no longer sustain it.

“Of course it is very obvious that we can no longer afford it. Subsidy bills have piled up, the country is not able to settle NNPC for the money we are spending on subsidy.

“And therefore, pricing petroleum at the market is the right thing to do at this point in time and I believe that this would benefit the country in the long time,” he said.

Follow us on Facebook/ twitter


Related Posts

Nigeria’s Daily Crude Oil Production Drops To 937,766 bpd In September

Nigeria’s Crude Oil Export Revenue Drops by 17% to $6.68 Billion in First Two Months of 2025

June 1, 2025
President Tinubu Signs 6 IMO Instruments Of Accession

FG Rallies Stakeholders to Accelerate Nigeria’s Gas Revolution, Signs Agreement with Ten Equity Partners

June 1, 2025
The Return of Standards Organisation of Nigeria to the ports

SON Raises Concern Over Influx Of Adulterated Lubricants, Engine Oil

June 1, 2025
Tensions Rise as Bayelsa Host Communities Threaten Shutdown Over Security Contracts

Tensions Rise as Bayelsa Host Communities Threaten Shutdown Over Security Contracts

June 1, 2025

Latest News

Vessels Expected At Lagos Ports As At 9th July, 2025

FG Donates 3,500 Life Jackets to Boost Waterways Safety in Ogun State

July 9, 2025

Dangote Commends NPA-Led OSS Committee, Donates Bus to Support Operations

Customs Intercepts ₦654m Worth of Undeclared Foreign Currency at Kano Airport, Hands Over Suspects to EFCC

Vessels Expected At Lagos Ports As At 9th July, 2025

CRFFN Dismisses Viral Court Judgement Reports, Reaffirms Regulatory Mandate over Freight Forwarders

Lagos Govt. Dismantles Illegal Checkpoints Along Badagry Expressway

Nigeria Customs Sensitises International Airline Operators on Currency Declaration

PHOTO NEWS Collaboration For Trade Facilitation

Vessels Expected At Lagos Ports As At 8th July, 2025

Nigerian Exporters Lament as Road Freight to Ghana via Benin, Togo Costs Over ₦10 Million Per Truck  

NIWA Responds to Lagos State’s Call to Halt Sand-Filling Approvals on Waterways 

Shippers’ Council Recovers Over N5.5 Million in Container Deposit Refunds, Demurrage Disputes in Q1

kindly like our Facebook page

Health

Contraceptive Pills Can’t Cause Cervical Cancer – Expert
Health

Contraceptive Pills Can’t Cause Cervical Cancer – Expert

June 30, 2025

Mrs Roseline Akinlabi, Adolescent and Youth Sexual Reproductive Health Desk Officer, Osun Primary Healthcare Board, says contraceptive pills cannot cause...

ONIONS: The Good Old Healing Vegetable

KNOW YOUR BODY PARTS: The Liver

June 16, 2025
ONIONS: The Good Old Healing Vegetable

ONIONS: The Good Old Healing Vegetable

June 16, 2025
Why Prostate Disorder Cases Are Increasing Among Nigerian Men – Experts

Why Prostate Disorder Cases Are Increasing Among Nigerian Men – Experts

June 1, 2025
20m Nigerians Live With Mental Health Issues, Says WHO

20m Nigerians Live With Mental Health Issues, Says WHO

June 1, 2025
Health Facts You Didn’t Know

How Your Habit Affects Fertility

May 19, 2025
Fruits For Raining Season

Fruits For Raining Season

May 19, 2025
See Mental Illness Like Other Treatable Diseases – Says Suicide Survivor

Health Facts You Didn’t Know

May 19, 2025
Alligator Pepper: Benefits, FAQ, Side Effects, & Warning

Alligator Pepper: Benefits, FAQ, Side Effects, & Warning

April 28, 2025
Water And Health: The Relationship That Helps Life

Water And Health: The Relationship That Helps Life

April 28, 2025

© 2021 Shippingposition

Navigate Site

  • Home
  • About Us
  • Contact us
  • Privacy Policy
  • Sitemap
  • Terms

Follow Us

No Result
View All Result
  • News
  • Coast To Coast
  • Oil and Gas
  • Maritime Education
  • The Terminals
  • Maritime safety

© 2021 Shippingposition