The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, has said that the era of fuel subsidy is gone forever in the country.
He spoke on Monday on a programme on Africa Independent Television (AIT).
“There is no fuel subsidy anymore in Nigeria. It is zero subsidy forever,” he said.
“There would be no resort to either fuel subsidy or under-recovery of any nature. NNPC will play in the petroleum marketplace, just like another marketer in the space.”
Mr Kyari assured that the government was not deregulating the petrol sub-sector.
“But we will be there for the country to sustain the security of supply at market price,” he said.
Kyari described the NNPC as a transparent organisation, saying the state oil firm was probably the “only company in the world that publishes its monthly financial and operations reports.”
The NNPC boss said as of last Sunday Nigeria produced about 2.3 million barrels of crude oil, including condensates, adding that the country plans to increase production to about three million barrels per day in the nearest future.
“The key issue in the crude oil business is market fundamentals of demand and supply. I believe COVID-19 will subside and countries will come back to life. I don’t see oil prices going below the $20 we saw last week. I’m certain, all things being equal, oil price will bounce back,” he said.
