By Mathew Dadiya, Abuja

The Nigerian National Petroleum Company Limited (NNPCL) Group Chief Executive Officer, Mele Kyari yesterday disclosed that the Federal Government owed the Company N28 trillion which it has used to pay for the subsidy from their cashflow.

Kyari said that NNPC wouldn’t be able to continue to pay for the subsidy since the Federal Government has not offset what they have used to pay hence the need to end the subsidy regime.

The NNPC Ltd GCEO, who spoke alongside with the Nigerian Mainstream and Downstream Petroleum Regulatory Authority (NMDPRA), Authority Chief Executive Farouk Ahmed with State House correspondents after a closed doors meeting with President Bola Tinubu at his first assumption of office at the Aso Rock, said the 2023 budget made provision for the subsidy till end of June 2023.

“So today the country don’t have the money to pay for subsidy. There’s incremental value that will come from it. But it is not an issue of whether you can do it or not because today we can’t afford it and they are not able to pay our bill. That comes to how much is the federation owing NNPC now.

“Today, we are waiting for them to settle up to N2.8tn of NNPC’s cashflow from the subsidy regime and we can’t continue to build this,” he revealed.

“Since the provision of the N6tn in 2022, and N3.7tn in 2023, we have not have not received any payment whatsoever from the Federation.

“That means they (Federal Government) are unable to pay and we’ve continued to support this subsidy from the cash flow of the NNPC. That is, when we net off our fiscal obligations of taxes and royalty, there’s still a balance that we’re funding from our cashflow. And that has become very, very difficult and affecting our other operations.

“We’re not able to keep some of these cash for invest on our core businesses.

The end result is that it can be a huge challenge for the company and we have highlighted this severally to government that they must compensate and NNPC they must pay back an NNPC for the money that we have spent on the subsidy,” he said.

Also speaking, Authority Chief Executive NMDPRA, Farouk Ahmed said that his office being the regulatory agency has been synergizing with the Federal Competition and Consumer Protection Commission (FCCPC) to make sure oil marketers did not explore the consumers.

Ahmed said there was no operational basis or sufficiently diminished/acute reduction in product availability at both supply and retail points in the value chain to justify the hardship and constraints otherwise emerging.

The Authority on May 29, 2023, advised consumers not to engage in panic purchases or otherwise stockpiling products in a manner inconsistent with regular periodic purchases and consumption.

Company Silent on Take-Off Date for Subsidy Removal

The Nigerian National Petroleum Corporation (NNPC) Limited, has refused to elaborate on the take-off date for the removal of petrol subsidy announced by President Bola Tinubu on Monday.

NNPC Group Chief Executive Officer, Mele Kyari, who spoke with State House correspondents on the need to remove petrol subsidy yesterday after meeting with President Bola Tinubu, however failed to name the take-off date for the exercise.

Kyari blamed panic-buying for the queues that surfaced in parts of the country after the president’s inaugural speech on Monday.

“All of us must have seen the importance of what exactly this means. And typically consumers will rush to the fuel station to fill their tanks. And that is why you’re seeing these queues,” he said.

“And also for marketers, they would like to see what exactly this means in the sense that… ‘so how are we going to sell the product if subsidy on PMS is removed’ — and the combination of the two is what you are seeing; the obvious dislocation of distribution.

“And we believe that this will go away very, very quickly…”

Kyari said the continued payment of petrol subsidy creates a situation whereby the NNPC is not “able to invest in our core businesses”.

“And at the end result is that it can be a huge challenge for the company. And we have highlighted this severally to government that they must compensate NNPC, they must pay back NNPC for the money that we have spent on the subsidy,” he added.

“Fortunately, also by virtue of the provisions of the law and also the Appropriation Act 2023, it is no longer available for that funding and we are very convinced today that the country can no longer fund this subsidy bill and they will not be able to pay NNPC.”

Kyari said the NNPC is happy with the president’s “commitment to the elimination of this subsidy because they can’t afford it anymore”.

Tinubu, Shettima Meet Aso Rock Officials, Others

In line with his earlier avowed commitment to hit the ground running immediately after inauguration, President Bola Tinubu, yesterday assumed duty in his office at the Aso Rock Presidential Villa Abuja.

The president’s convoy arrived the front arcade of the Villa office at about 2:30 p.m. where he received a special military salute at the diplomatic gate.

Tinubu was received by the Vice President, Kashim Shettima, who had earlier assumed duty, and the Speaker of the House of Representatives, Femi Gbajabiamila.

Also present to receive the President were the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele; the Group Managing Director of the NNPCL, Mele Kyari, and Executive Secretary of Nigeria Midstream and Downstream petroleum Regulatory Authority, Farouk Ahmed, among others.

Tinubu, a former governor of Lagos State, immediately went into a meeting with his officials.

The president and Mr Shettima were sworn-in on Monday in Abuja. They took over from former President Muhammadu Buhari and former Vice President Yemi Osinbajo.

Similarly, Vice President, Senator Kashim Shettima, also resumed work yesterday at the Presidential Villa, interacting with the Permanent Secretary, State House, Mr Tijanni Umar, some management staff of the Office of the Vice President and State House Correspondents.

The Vice President was accompanied to the Office by his personal aides where he met with the Permanent Secretary and senior civil servants in the Office of Vice President.

Speaking to State House Correspondents inside his office, the Shettima talked about expectations in the coming days, noting that “power to me is a humbling experience, it is all about how we can make life better for the common man.”

 “I want to assure our countrymen that President Bola Tinubu will by the grace of God catapult this nation to a higher pedestal. He is determined, he has the skills set, the temperament, the disposition and the purity of mind and commitment to give service to this nation,” he added.

 The Vice President further stressed that “the President and Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria is poised to redefine the meaning and concept of modern governance,” assuring Nigerians that “he (President Tinubu) is going to provide the leadership and we will rally round him. Give him our unequivocal support and loyalty to see to the realization of the Nigerian dream.”

He also reassured that “our President is a man of strong will and in the fullness of time we will appreciate his humble intentions for this country. The issue of fuel subsidy will be frontally addressed, the earlier we do so, the better. The issue of multiple exchange rates, we need to collapse them into one.”

“These are two big elephants in the room, and in the days and weeks to come, the President is going to unveil his agenda.

As I have always said, there can never be two captains on a ship, he is the President and Commander-in-Chief of the Armed Forces, I am his VP, my relevance is directly proportional to my level of loyalty to my principal.

 Speaking on his relationship with President Tinubu, he said “this is a gentleman that I have known for over a decade and I have closely interacted with, be rest assured that we are going to work harmoniously as a team, as a family for the greater good of our nation,” the VP added.

Shettima was sworn-in on Monday, May 29, as Nigeria’s number two citizen at a historic ceremony attended by leaders across Africa and beyond, marking the beginning of a new journey tagged “renewed hope”.