BusinessNewsSubsidy Payment Only Enriched a Cabal, Says Kyari

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The group managing director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, has accused a cabal of ripping off the benefits of the fuel subsidy regime meant to be relinquished to the masses.

Kyari disclosed that subsidy had to be abolished due to the high rate of fraudulent activities surrounding it.

West Africa Pilot had reported the removal of the subsidy which led to an increase in petrol and electricity prices across Nigeria. While retail price of petrol increased by about 10 per cent to about N160 per litre, the average unit cost of electricity increased by almost 100 per cent to about N62 per kilowatt-hour.

According to Kyari, the fuel subsidy was only beneficial to the cabal rather than the masses who should originally be it beneficiaries. The federal government removed it with the intention of reinvesting on projects that will have a direct impact on the masses.

“The crude oil is a global commodity and its price is not hidden, everyone can calculate and know how much is the cost of every final product from the crude at the international market. But, since the inception of oil importation, the government has been paying subsidy on petrol to make it cheaper for Nigerians to buy below the cost price.

“This subsidy is designed to assist Nigerians, that is the intention. But in reality, the masses are not the beneficiaries. First, the masses are not the owners of the exotic cars, buying fuel, owning the filling stations, and doing the oil business,” he said.

Kyari identified the fuel subsidy as the major source of several corrupt activities committed in the country.

“This subsidy that the government has been paying over the years is the root of all the atrocities and fraud committed in this country.

“For example, if you look at it from 2006 till 2020, we have spent over N10 trillion on fuel subsidy. Apart from that, there is also subsidy on foreign currencies, everybody knows how much is dollar in the market, but the government is also subsidising it. So, this and the fuel subsidy, within this period, have gulped between N14 trillion and N15 trillion.

“It was not the masses of Nigeria that were enjoying this subsidy, except some members of a cabal, who are rich and powerful. They were enriching themselves with the subsidy money at the detriment of the masses who were the primary target.

“From this money, Nigeria has been able to pay workers’ salaries without retrenching despite the effects of the COVID-19 on the global economy,”

“In the whole of West Africa, it is only Nigeria that didn’t retrench workers as a result of the pandemic. Apart from that, part of the money will be used to support farmers and other business owners,” he added.

The group coordinator also noted that the money from subsidy payments can be redirected to other areas of development pertinent to the masses.

Beloved John (Staff Writer)

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