- The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Emmanuel Ibe Kachikwu says fuel subsidy removal would not lead to riots as witnessed in January 2012, stressing that over 90 per cent of Nigerians do not benefit from the subsidy regime.
- Mr Kachikwu made this known during an interview on Arise Television monitored by Nairametrics. He also revealed the NNPC would explore third party financing to boost the capacity of the refineries to 80 per cent within a 12 to 18-month period.
“The truth is the over 90 per cent of Nigerians today are really not enjoying subsidy. Subsidy is likely in the big cities like Lagos and Abuja and mainly for the rich because the subsidy element does not trickle down to the hinterland and those who are poor,” he said.
Kachikwu, however, stated that rather than deal with subsidy in the sense of absolute removal in the way it is known, the NNPC would create ways to eliminate the perception of subsidy.
“Right now, for example, we have not removed subsidy but petroleum products are selling at market prices due to inefficiencies in the system and people are buying those products and avoiding queues.
“We have got to be intelligent about it; the truth is that as the oil price continues to drop, we are going to face the reality of our time, which is survival,” Kachikwu explained.
- He stated that the NNPC cancelled the Offshore Processing Agreements (OPAs) with oil traders so as to have the opportunity to look at the contracts and make them more transparent for Nigerians to get better value than they are getting from the existing contracts