The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, yesterday declared an end to fuel subsidy in the country, saying the corporation will no longer subsidise pump price of premium motor spirit, otherwise known as petrol.
According to him, market forces will henceforth determine the price of the commodity.
Kyari who spoke on an AIT morning programme, MoneylinewithNancy, in Abuja said, “There is no subsidy and it is zero forever, adding that going forward there would be no resort to either subsidy or under recovery of any nature. NNPC will play in the marketplace; it will just be another marketer in the space. But we will be there for the country to sustain security of supply at market price.”
Maintaining that NNPC was a transparent organisation, he pointed out that the Corporation was possibly the only company in the world that publishes its monthly financial and operations reports.
Kyari said the Corporation is proud of the initiative, just as he guaranteed Nigerians of NNPC’s commitment and observance of transparency and accountability in all its transactions.
He disclosed that as at yesterday, Nigeria produced 2.3million barrels of crude oil, including condensates, saying that the plan was for the country to ramp up production to 3million barrels per day in no distant future.
The NNPC boss observed that Nigeria was endowed with premium crude oil grades which are supplied to Europe, Asia and India, stressing that despite the COVID-19 pandemic which has affected demand and supply fundamentals, all of Nigeria’s export terminals are still in operations.
The key issue in crude oil business is market fundamentals of demand/supply. I believe COVID-19 will subside and countries will come back to life. I don‘t see oil price going below the $20 we saw last week. I‘m certain, all things being equal, oil price will bounce back,“ Mallam Kyari informed.
The NNPC’s helmsman assured Nigerians of ample supply and distribution of petroleum products, saying despite the Coronavirus pandemic, the corporation had in stock about 2.6billion litres of petroleum products that could service the country’s energy needs for the next two months.
He stated that the NNPC was collaborating with all relevant stakeholders to ensure that the supply and distribution value chain is not disrupted to guarantee energy security for the country.
Speaking on contributions of the Oil and Gas Industry in curbing the Cronavirus pandemic in the country, Kyari expressed the sector‘s readiness to build a robust healthcare for Nigeria.
He said the industry is set to embark on the construction of at least two hospitals and a world class diagnostics center in each of the geopolitical zones in the country, in addition to the 250 temporary bed facilities that it offered to support government’s efforts in the fight against Coronavirus.
He noted that the hospitals and the world class diagnostics centers would be an addition to the regular corporate social responsibility (CSR) initiatives of the Upstream and Downstream companies, as well as service providers operating in the Oil and Gas Industry.
A press release by the group general manager, Group Public Affairs Division of the NNPC, Dr Kennie Obateru, quoted Kyari as saying that all commitments from the industry would be collected in kind and handed over to the presidential taskforce for the control of coronavirus.
He added that the petroleum industry would use its clear and transparent governance framework, collection and distribution processes already emplaced in respective companies to support the country’s healthcare infrastructure in this troubling times.
The GMD stated: “We and all our partners, comprising the Upstream, Downstream and service providers, decided to come together to respond in three thematic areas. First is the provision of medical consumables such as facemasks and testing kits among others.
Secondly, the medical logistics and patients’ support issues such as ventilators and oxygen generating plants. The third leg is provision of temporary isolation centres and the establishment of permanent medical infrastructure that will be of use during this period and after the pandemic is stemmed. We believe this pandemic will be eradicated.”
He hinted that the oil and gas industry in the country would liaise with the various state governments to emplace a sustainable and efficient governance structure to manage the health facilities established by the industry long after the COVID-19 pandemic had been brought under control.
“Nigerians will recall that last week, NNPC and our partners in the Upstream, Downstream and services sector launched an Industry-wide collaborative initiative in support of the ongoing Federal Government’s efforts to curb the COVID-19 pandemic. The total commitment to this initiative now amounts to N21billion and it is growing and potentially it is going to grow,” Kyari noted.
The NNPC GMD stated that the distribution of the committed items would be under the stated three-thematic areas of the initiative, adding that considering supply chain constraints, all committed items cannot be delivered and distributed all at once.
According to him, NNPC and partners have a streamlined programme for the distribution of these items on weekly basis to the nook and cranny of the nation from the three clearing houses in Abuja, Lagos and Port Harcourt.
“This is the hallmark of ‘Good Corporate Citizenship’, which the Oil & Gas Industry is known for. We remain accountable to Nigerians and will continue to provide details of what has been collected, how it’s distributed and where it’s being delivered to, the helmsman of the Nigeria State Oil Firm enthused.[Leadership]