Fuel Scarcity: NNPC says Nigeria loses infrastructure development worth trillions of Naira
The Nigerian National Petroleum Corporation Limited (NNPC), says the country’s lengthy fuel subsidy system has prevented massive infrastructural development for Nigerians.
According to the NNPC, the money used to pay for gasoline subsidies could build 37 120-bed tertiary hospitals with state-of-the-art equipment for N32 billion annually and 7,500 kilometres of well-equipped roads at a cost of N400 million each.
This was revealed in Abuja during a joint National Association of Nigerian Students (NANS)/Civil Society Organizations (CSOs) sensitization workshop on the NNPC Operations by Mr. Lawal Musa, Senior Business Advisor to the GCEO, NNPCL.
Read Also: Army Says Troops’ Understanding Of Indigenous Languages Will Enhance Operations
Musa, in a presentation entitled “Petroleum Industry Act (PIA) and the Nigerian Economy’’ said the Federal Government spent as much as N4.8 trillion annually on fuel subsidy at the expense of the wellbeing of Nigerians.
In an analysis of the opportunity cost of the subsidy spending, he said deregulation could deliver 500,000 new houses and education and skill up of two million Nigerian students, among others.
He said it could deliver N12 trillion in four years to Nigeria while annual Premium Motor Spirit (PMS) under recovery would escalate to N3 trillion.
He said the cost of fuel subsidy outweighed the direct benefits particularly to the masses.
He further said that deregulation could provide additional 27,000 megawatts of electricity to Nigerians and build and equip 2,400 hospitals in 774 LGAs.
Musa explained that the PMS (fuel) was sold lowest price in Nigeria among most West African countries in spite of the average cost of $2.7 per litre globally, which amounted to up N570 per litre.
According to him, verifiable PMS demand data is critical to National planning and energy security.
In an overview of the PIA and New NNPC structure, Mrs Oritsemeyiwa Eyesan, the Chief Strategy and Sustainability Officer, NNPC, said the new entity was incorporated as a commercial company to be run like any other private company in the country, following the provision of the PIA 2021.
Eyesan, represented by Mr Vincent Ogbu, her Business Advisor said NNPC’s activities were guided by three core values namely integrity, excellence and sustainability.
She explained that the signing of PIA into law overhauled the institutional, regulatory and fiscal framework for the Nigerian petroleum industry and provided structured approach for managing host community development and investments.
She further said that significantly, the PIA mandated incorporation of old NNPC and established NNPC as a fully commercial entity.
Earlier, the NNPC Group Chief Communications Officer, Garbadeen Muhammad, said the NNPC was engaging with students as critical stakeholders in the new organisation which belonged to over 200 million Nigerians including the Nigerian students.
Muhammad said the engagement which would be done annually, was aimed to enlighten the students and CSOs on the NNPCL as a new entity registered by the Corporate Affairs Commission under the Company and Allied Matters Act.
