Fakoyejo OlalekanThe Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari, has disclosed that the immediate past president, Muhammadu Buhari, didn’t pay for subsidies in 2022 and the first half of 2023.
Kyari said Buhari budgeted N6.3 trillion for fuel subsidy in 2022 and N3.7 trillion in 2023, however, none of the amount was paid to subsidise petrol.
Join our WhatsApp ChannelHe made this known on Thursday during an interview on Arise TV, days after he revealed that Buhari’s administration was owing the NNPC N2.8 trillion for subsidy payments.
The NNPC Group CEO said there’s currently a provision for fuel subsidy till the end of June, but the Federal Government hasn’t paid the company for it.
Kyari said the key issue is the country does not have the money to back the subsidy and this has made it impossible for NNPC to meet its obligations such as tax and royalty remittance.
“There was a provision of N6.3 trillion in 2022 and N3.7 trillion in 2023 for up to half a year, but I can tell you that not a single naira of that has been funded and what did we do because by law we are obligated to pay taxes and royalties and other obligations but we held back the fiscal obligations of our shareholders because there was nothing to do.
“The burden of subsidy must be financed because the provision in the law simply means that the government will write a cheque to NNPC at the end of the month for the service that we’re providing to the nation. That cheque has not been written at all.
“Absolutely, there is a provision in the budget but you do not have the cash to back it up or you also don’t have the fiscal obligation that should have come for the NNPC to settle for this and this definitely means that there is provision for the end of June, according to the appropriation act but you can’t give what you don’t have,” Kyari said.
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