NNPC Limited will not tie subsidy, petrol price to operations, says Mele Kyari

The Nigerian National Petroleum Company Limited (NNPC) says it will ensure the provision of petroleum products to the federal government.

Mele Kyari, group managing director, NNPC, said this during a pre-recorded interview with Channels Television on Sunday ahead of Tuesday’s unveiling of NNPC Limited as a commercial entity. 

In September 2021, the Corporate Affairs Commission (CAC) completed the incorporation of the NNPC Limited.

He emphasised that NNPC would be a service provider to the government rather than bearing the responsibility for importation and subsidy.

In the first five months of 2022, NNPC deducted N1.27 trillion for petrol subsidy — about 31% of the N4 trillion provision for the year.

“In the case of the price of petroleum, this is a policy matter. And the NNPC is going to be a supplier to the Federation at a fee. So, the issue of at what price you sell petroleum will be the decision of the state,” he said.

“The state has continued to maintain that we must continue to pay subsidy on petroleum products. We are happy to do this, but as a commercial venture, we will have a service-level agreement between us to render that service.”

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