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Why Nigerian Government will make provision for fuel subsidy in 2022 ─Mele Kyari

Malam Mele Kyari, Group Managing Director of NNPC

*Malam Mele Kyari, Group Managing Director of the Nigerian National Petroleum Corporation, clarifies the process of ending the subsidy regime may not be concluded anytime soon, hence the need to reintroduce it in 2022 Budget

Alexander Davis | ConsumerConnect

Though the Federal Government has reportedly initiated a conversation with relevant stakeholders in the downstream sector of the economy towards ending the current subsidy regime, the Nigerian National Petroleum Corporation (NNPC) has disclosed that government will make provision for subsidy in 2022.

ConsumerConnect reports Malam Mele Kyari, Group Managing Director (GMD) of NNPC, stated this development Wednesday, September 1, 2021, at a public hearing organised by the Nigerian Senate Committee on Finance on the 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) in the National Assembly (NASS), in Abuja, FCT.

Malam Kyari said though no provision was made for fuel subsidy in 2021, he informed the lawmakers that the government had begun a conversation with relevant stakeholders to exit the subsidy regime.

RELATED Nigerian Government To Withdraw Fuel Subsidy Soon, Says Minister

The Senate is holding a three-day public hearing on the 2022-2024 MTEF/FSP, as part of processes to prepare the 2022 Federal Budget.

It was gathered the MTEF sets parameters with which the budget is prepared, including the borrowing plan of the government as it proposes $57 per barrel as crude price and 1.88million barrels daily oil production.

The NNPC GMD, however, stated that the process may not be concluded anytime soon, hence the need to reintroduce subsidy in the 2022 Federal Budget.

RELATED World Bank Seeks Petrol Subsidy Removal As Nigeria Plans N900billion For 2022

Sen. Solomon Olamilekan Adeola, Chairman of the Senate Committee on Finance, however, raised a concern about revenue generation to curb borrowing to fund the budget in the country’s economy.

The lawmakers also urged the government agencies to equally focus on revenue generation as they do on spending the government’s revenue.

Recall the Kyari Wednesday last week met with the members of the House of Representatives Committee on Finance for a similar hearing on the 2022-2024 MTEF/FSP.

During the meeting, he disclosed that Nigeria would stop the importation of Premium Motor Spirit (PMS), popularly known as petrol, when the Petroleum Industry Act (PIA) comes into full effect, and when the Dangote Refinery kicks off operations in the country.

He equally responded to questions on the Dangote Refinery, and justified the Federal Government’s 20 percent equity share for $2.7billion in the plant.

The GMD noted that the government’s equity in Dangote Refinery is well-thought-out as the West African country now has a venture that will ensure the production of millions of litres of petrol.

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