Business

Subsidy: Kyari meets Tinubu, says fuel queues will be short-lived

Published

3 years ago

May 31, 2023

Group Managing Director of NNPC, Mele Kyari

Subsidy: Kyari meets Tinubu, says fuel queues will be short-lived

The Nigerian National Petroleum Company Limited, NNPC Ltd., has assured Nigerians that fuel queues in filling stations, following the affirmation of the removal of subsidy, will soon vanished.

Mele Kyari, the Group Chief Executive Officer, GCEO, briefed State House correspondents after meeting President Bola Tinubu on Tuesday at the Presidential Villa, Abuja.

Mr Tinubu, had in his inaugural speech on Monday, commended the past administration for phasing out the petrol subsidy regime, which had increasingly favoured the rich more than the poor.

Mr Kyari said that the Petroleum Industry Act (PIA) stipulated that the price of petroleum should be determined by market forces.

“I know all us must have seen the fuel queues in filling stations across the country.

“It is very understandable that whenever announcements to changes to prices of petroleum happen, both buyers and marketers will like assurance of what exactly this means and typically, consumers will rush to the filling stations to fill their tanks and that is why you are seeing these queues.

“And also for marketers, they will like to see exactly what this means in terms of how are we going to sell the products if subsidy on PMS is removed?

READ ALSO:

“And the combination of the two is what you are seeing -the obvious dislocation on distribution and we believe that this will go away very quickly.

“And as you may be aware, PIB which was accented in 2021 and became an Act, made it clear that the price of petroleum must be priced at the market,” Mr Kyari stated.

He said, however, that the government also decided to provide for subsidy in the 2022 Appropriation Act and also for half year in 2023.

According to him, while the PIA is clear that petroleum should be priced, but it did not say that government cannot put its money in any way it wants.

“Therefore, we, as a commercial company established by the PIA, we are doing it strictly as business; delivering value as supply of last resort by virtue of the law but at a cost to the federation.

“And that cost includes the cost of subsidy; this subsidy cost should have been money that will be given to the NNPC, may be on monthly or daily basis.

“However, since the provision of the N6 trillion in 2022 and N3.7 trillion in 2023, we have not received no payment whatsoever from the federation; that means they are unable to pay and we continue and continue to support the subsidy from the cash flow of the NNPC.”

He also explained further: “That is when we net off our physical obligations of taxes and royalties, there is still a balance we are funding from our cash flow and that has become very difficult, and it affects our other operations.

“We are not able to keep some of this cash to invest in our core businesses and the end result is that it can be a huge challenge for the company.

“And we have highlighted this severally to government; that they must compensate NNPC; they must pay NNPC for the money we have spent on subsidy.’’

READ ALSO:

The NNPC Ltd boss said that by virtue of the law and the Appropriation Act 2023, funding was no longer available while the country could no longer fund the subsidy and no longer able to pay NNPC.

“Therefore, we are pleased to note the president’s commitment to the removal of subsidy because they cannot afford it anymore.

“And we will take necessary steps to ensure that we recover our cost from the market and also being mindful of the fact that situations like this can lead to exploitation of customers.

“And we are working with the regulator who is here with me to see how we can cap such excessive management of greed to say the least,” Mr Kyari said.

“And this will be contained by virtue of the provisions of the law; the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) and the competitor agencies will play their part.

“We believe very strongly that this is actually belated; we have been doing subsidy that has no significant value to the rest of the federation and the rest of our countrymen.

“And we think this is a very commendable step taken by the president to bring into effect the provisions of the law,’’ he added.

On his part, Farouk Ahmed, the Chief Executive of NMDPRA, said that the pronouncement by the president was in tandem with the law.

Ahmed said that prospective importers who met the criteria would be licenced to import fuel in order to ease pressure on NNPC.

He said that efforts were underway to make sure that consumers were not exploited.

“We also understand the provision of the law that provided for the removal of subsidy from February 2021; therefore, the president’s pronouncement yesterday was in line with the law.

“However, what I can assure is that we are ready to license anybody who wants to import because NNPC has always been supplier of PMS.

“However, with the removal of subsidy as pronounced by the president that opened the floodgate for any intending marketer that wants to import PMS, we are ready to issue lincences for them to do; at least that will open up competition and of course there will be less burden on NNPC.

“I also want to assure the general public that NMDPRA and the Federal Competition and Consumer Protection Commission will make sure that consumers are not taken advantage of,’’ he said.

Subsidy: Kyari meets Tinubu, says fuel queues will be short-lived

NAN

Related Topics:Featured mele kyari subsidy Tinubu

Up Next

Despite inaugurating Dangote refinery, FG willing to issue petrol import licences

Don't Miss

We have enough fuel, no need for panic – FG

Business

NCC Orders MTN, Other Telcos to Compensate Subscribers for Poor Network Service

Published

15 hours ago

March 30, 2026

Trends Admin

SIM services disruption looms as telcos begin platform migration

NCC Orders MTN, Other Telcos to Compensate Subscribers for Poor Network Service

The Nigerian Communications Commission (NCC) has directed major mobile network operators (MNOs), including MTN, Airtel, Glo, and 9mobile, to compensate subscribers affected by poor network quality in areas where performance falls below regulatory standards. The move is part of a broader shift toward a consumer-focused approach aimed at protecting users and strengthening accountability in Nigeria’s telecommunications sector.

In a statement on Sunday, Nnenna Ukoha, Head of Public Affairs at the NCC, emphasized that subscribers should not bear the full burden of service disruptions caused by operators’ failure to meet prescribed benchmarks. She explained that compensation will be provided in the form of airtime credits, calculated based on subscribers’ average spending patterns and the duration of service outages in affected areas.

READ ALSO:

“Erring operators will compensate affected users directly for breaches of quality of service key performance indicators within specified time frames,” Ukoha said. She added that while regulatory fines have traditionally served as a deterrent against poor service delivery, the commission is now adopting a more consumer-centric approach that ensures users directly benefit from enforcement actions.

Under the directive, tower companies and network providers are also required to reinvest fines and penalties into infrastructure upgrades, aimed at addressing coverage gaps and improving overall network quality. Subscribers are encouraged to report service interruptions to their operators and the NCC to ensure timely compensation.

Industry observers have welcomed the move, describing it as a significant step toward empowering telecom users, improving quality of service (QoS), and holding operators accountable for network performance failures. The NCC will monitor compliance closely and take further action against any operators that fail to meet the compensation and service standards.

NCC Orders MTN, Other Telcos to Compensate Subscribers for Poor Network Service

Auto

Motoring World marks 30 years, set to rally industry leaders in Lagos

Published

16 hours ago

March 30, 2026

Trends Admin

Motoring World marks 30 years, set to rally industry leaders in Lagos

Motoring World, one of Nigeria’s foremost automotive publications, will celebrate its 30th anniversary on June 4, 2026, with a high-profile event at the MUSON Centre.

The milestone gathering is expected to draw policymakers, industry leaders, diplomats and innovators to commemorate three decades of impactful journalism, advocacy and contribution to the growth of Nigeria’s automotive sector.

Founded on June 12, 1996, as a syndicated radio magazine programme, Motoring World pioneered automotive broadcasting in Nigeria before expanding into print in 1998. It has since evolved into a multi-platform brand at the forefront of promoting industry development, modernization and policy reform.

Over the years, the publication has gone beyond news reporting to play an active role in shaping regulatory frameworks, encouraging local content development and promoting industry standards.

Publisher and Chief Executive Officer, Femi Owoeye, said the organisation was driven by a clear vision from inception.

READ ALSO:

“Motoring World started with a simple vision: to give voice and structure to Nigeria’s automotive industry. Over the years, we have gone beyond reporting to actively advocate policies that support industry growth, local production and a more structured ecosystem,” he said.

Activities lined up for the anniversary include the unveiling of a special 30th anniversary edition of Motoring World magazine, chronicling the evolution, milestones and future of the industry. Distinguished stakeholders with three decades of contributions to the sector will also be honoured.

A keynote lecture titled, “Reporting the Road Ahead: Automotive Journalism as a Catalyst for Nigeria’s Auto Industry Development,” will underscore the critical role of the media in shaping the nation’s automotive landscape.

Dignitaries expected at the event include the Minister of Industry, Trade and Investment, Jumoke Oduwole; the Director-General of the National Automotive Design and Development Council, Oluwemimo Joseph Osanipin; state governors, transport commissioners and members of the diplomatic corps.

Owoeye noted that the anniversary represents more than a celebration.

“This is a tribute to resilience, strong partnerships and the collective drive that has sustained the industry. As we honour key players and reflect on our journey, we are also setting the tone for the next phase of mobility in Nigeria,” he added.

The event promises a blend of reflection, recognition and renewed commitment to advancing Nigeria’s automotive industry.

Motoring World marks 30 years, set to rally industry leaders in Lagos

Auto

Hyundai unveils flagship SUV Palisade, rolls out strong line-up in Lagos showcase

Published

2 days ago

March 29, 2026

Trends Admin

Hyundai unveils flagship SUV Palisade, rolls out strong line-up in Lagos showcase

Hyundai Nigeria has unveiled the all-new Hyundai Palisade in Lagos, headlining a media showcase that also featured the Hyundai Accent, Hyundai Creta, Hyundai Tucson and Hyundai Santa Fe, as the automaker intensifies its push across key segments of the Nigerian market.

The event, held at the company’s Victoria Island showroom, offered journalists a first-hand view of Hyundai’s expanding portfolio, ranging from entry-level sedans to premium three-row SUVs.

Taking centre stage was the debut of the Palisade, Hyundai’s flagship SUV, positioned to strengthen the brand’s foothold in the premium segment.

With its bold exterior styling, spacious three-row layout, upscale interior and advanced safety and convenience features, the model is targeted at families and executive buyers seeking comfort, space and strong road presence.

Across the line-up, Hyundai showcased a broad spectrum of offerings. The Santa Fe reinforces its appeal as a refined, family-oriented SUV with generous cabin space and premium detailing, while the Tucson stands out for its blend of modern design, practicality and everyday versatility.

In the compact SUV category, the Creta was highlighted for its mix of style, efficiency and urban functionality, while the Accent sedan retains its positioning as a practical and cost-effective option for young professionals, fleet operators and first-time buyers.

Speaking at the event, Brand Head, Hyundai Nigeria, Gaurav Vashisht, said the launch underscores the company’s commitment to deepening its footprint in Nigeria with globally competitive products adapted to local needs.

“This introduction of the all-new Palisade strengthens our premium SUV offering while complementing a well-rounded line-up that delivers on design, safety, innovation and everyday usability,” he said.

The showcase also provided an avenue for media interaction with Hyundai executives and product specialists, alongside detailed vehicle walkarounds covering design, technology and safety features.

Hyundai Nigeria reaffirmed its focus on delivering globally benchmarked vehicles with strong local relevance, even as competition intensifies in Nigeria’s evolving passenger vehicle market.

The event also marked the launch of Hyundai’s Easter campaign, offering customers value-added benefits such as complimentary delivery, accessories, registration and service packages.