The Group Managing Director (GMD) of Nigerian National Petroleum Corporation (NNPC) Mele Kyari says the stoppage of fuel subsidy among other reasons will benefit the ‘ordinary man’ as monies will be freed up to fund critical infrastructural projects.
Kyari disclosed this on Wednesday while speaking on Channels Television breakfast programme, Sunrise Daily.
He also noted that it is only the elites that benefit from fuel subsidy and this is a huge economic disruption.
“The stoppage of subsidy or under-recovery payment will ensure monies are freed up for the government to fund critical infrastructural projects such as education, health, roads and many others for the benefit of the ordinary man.
“We decided that the fuel subsidy has to be stopped. In any case, subsidy is an elitist thing because it is the elites (including me) that benefit from fuel subsidy. They are the ones that have SUVs, four, five cars in their houses. The masses should be the ones to benefit,” he said.
The NNPC boss also highlighted some disadvantages of fuel subsidy.
“There are many things wrong with the under-recovery because we are supplying more than we need; we are supplying the whole of West Africa.
Therefore the under-recovery itself is so over-bloated because we are subsidising the whole of West Africa. This has to stop,” he said.
Kyari also revealed steps taken by NNPC in contributing to the fight against the COVID-19 pandemic in Nigeria.
According to him, NNPC has made a commitment worth N21billlion to the intervention scheme of the Federal Government.
“The Nigerian government has subsidised fuel for decades. Experts in response have called for total deregulation of the oil sector while others have opposed it, saying poor Nigerians may not be able to afford the products if the prices were not regulated and subsidised”, he added.