The Nigerian National Petroleum Corporation (NNPC) has said it has saved N100 billion monthly through subsidy removal.
The Corporation said this in a statement released and signed by its Group General Manager, Group Public Affairs Division, Garba Deen Mohammed while explaining NNPC’s move to end fuel scarcity.
According to him, the Corporation has been able to manage prices at current levels through modulations.
“We have been able to eliminate subsidy payments by managing prices at current levels through price modulation. This has resulted in saving N100 billion monthly for the nation,” he said.
Also, the Corporation finally came clean on the reason it has been solely responsible for fuel importation through the months.
He explained that the current administration inherited a huge catalogue of issues and problems in the downstream sector not limited to arrears of subsidy payments to oil marketers.
Other issues, it said included “corruption and inefficiencies in the supply and distribution chain, incessant vandalism of pipelines and poor performance of refineries, among others,” he said.
Mohammed said combination of the above problems, resulted in most oil majors “completely pulling out” from the importation business, making the NNPC to assume a near 100 percent importation obligation without necessary logistics put in place.
He however, said NNPC management had initiated and made progress on various key solutions to providing a lasting solution to the issues.
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