NNPCL Supports Tinubu’s Removal Of Subsidy

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.

Speaking to journalists, Kayri NNPC Limited said “welcomes the decision of Mr. President to announce that the subsidy on PMS (premium motor spirit) is over.

This has been a major challenge for NNPC continued operations. We have been funding the subsidy from the cash flow of NNPC since the government is unable to defray the cost of the subsidy that is due to the corporation.

“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”.

While assuring consumers that NNPC has enough stock of petrol in the supply system, he appealed the potential change in pump should not be enough reason for people to engage in panic buying.