NNPC Reveals How Much Nigerians May Pay for Litre of Petrol after Subsidy Removal in 2022

NNPC Reveals How Much Nigerians May Pay for Litre of Petrol after Subsidy Removal in 2022

  • After petrol subsidy removal in 2022, Nigerians will pay between N320 and N340 per litre, the GMD of the NNPC, Mele Kyari said
  • The NNPC boss confirmed that fuel subsidy removal will be achieved in 2022, saying it has now been backed by law
  • Meanwhile, the minister of finance, budget and national planning, Zainab Ahmed, said N5000-a-month transportation grant will be paid to poorest Nigerians after subsidy removal

Malam Mele Kyari, the Group Managing Director and Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), says Nigeria should be out of subsidy regime by the end of February 2022.

Vanguard reported that the NNPC boss this at the presentation of the World Bank Nigeria Development Update, November 2021 edition titled “Time for Business Unusual”.

Petrol May Cost N340/Litre after Subsidy Removal in 2022, NNPC GMD Kyari Says
Petrol price may rise to N340 per litre in 2022 as Nigeria appears set to do away with the subsidy regime. Photo credit: Nigerian National Petroleum Corporation
Source: Facebook

Kyari added that by February 2022, there will be no provision for subsidy legally, PM News also reported.

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He, however, said the Nigerian government has a bigger social responsibility to cater for the ordinary and will ensure that the subsidy regime is exited in the most subtle and easy manner.

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According to him, fuel subsidy removal would definitely be achieved in 2022 as it was now fully backed by law.

The NNPC chief added that the price of the product may range between N320 and N340 per litre after the removal of subsidy.

Governors back subsidy removal, says El-Rufai

Meanwhile, Malam Nasir El-Rufai, the governor of Kaduna state, has said state governments are in support of the federal government's plan to exit fuel subsidy regime.

El-Rufai, a panelist who joined virtually, said that if the regime of fuel subsidy was not eliminated, 35 out of the 36 states of the federation may not be able to pay salaries in 2022.

Read also

Nigerian Labour Congress reacts to planned fuel increase

He argued that kerosene which matters most to the masses had been regulated without any hitches, while diesel which was most important to transporters had also been regulated for a long time.

Similarly, Marco Hernandez, World Bank Lead Economist for Nigeria said petrol subsidy is not only costly it also mainly benefits richer households.

FG to replace fuel subsidy with N5,000 transportation grant for 40m Nigerians

Meanwhile, Zainab Ahmed, the minister of finance, budget and national planning, has said the subsidy will be replaced with a N5000-a-month transportation grant to the poorest Nigerians.

According to Zainab, the grant will go to about 20 to 40 million people who make up the poorest population in Nigeria.

The minister went on to note that the final number of beneficiaries will depend on the resources available after the removal of the fuel subsidy.

Source: Legit.ng News

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