President Bola Tinubu’s decision to eliminate the gasoline subsidy has the support of the Nigerian National Petroleum Company Limited.
Mele Kayri, group CEO of NNPC Limited, stated in Abuja that the company’s cash flow has been severely impacted by payments for gasoline subsidies.
Former President Muhammadu Buhari forced NNPC Limited to pay the subsidy payments; the business recorded the expense as a fuel under-recovery on its accounts.
However, the corporation subtracts the expense from the proceeds from the sales of Federation Crude Oil that is owed to the Federation Accounts.
Kayri NNPC Limited said in a statement to the press that it “welcomes the decision of Mr. President to announce that the subsidy on PMS (premium motor spirit) is over.” This has made it extremely difficult for NNPC to continue operating. Since the government is unable to cover the expense of the subsidy that is owed to the company, we have been funding the subsidy from NNPC’s cash flow.
“We believe that this will free up resources for the NNPC to do the great work that this company is doing for our country and it allows us to continue to operate as a commercial entity”.
He reassured customers that there is adequate gasoline in the supply system and urged them not to panic buy because of the anticipated change in pump location.
