In compliance with a 24-hour ultimatum, Mele Kyari, the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company (NNPC) Limited, revealed that refinery functionality aims at achieving energy security rather than immediate petrol price reduction.
He made this revelation While facing the joint committee on appropriations to address concerns regarding the substantial expenditure on refinery maintenance.
During the session, Kyari stated that while a reduction in pump prices might be possible, it is not the primary objective of the refineries. He highlighted the NNPC’s commitment to becoming a net exporter of petroleum products by 2024, contributing to the nation’s energy security goals.
Furthermore, Kyari clarified that no subsidy is charged to the federation, noting that NNPC has directly contributed 4.45 trillion naira in taxes, royalties, and dividends to the federation.
Additionally, the NNPC boss revealed a dividend payment of 406 billion naira to the Federal Government’s account since July 2023.
Addressing concerns about credible data on Premium Motor Spirit (PMS) consumption, Kyari attributed the lack of accurate measurement instruments in the country. He also confirmed the absence of a reliable database for PMS consumption.
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The Chairman of the Senate Appropriation Committee, Senator Adeola Olamilekan, had issued the ultimatum and emphasized the importance of Kyari’s appearance to prevent undermining the legislative process.
The committee requested a list of companies operating with OML licenses in Nigeria and their daily production output.
Senator Olamilekan expressed concerns that revenues crucial for the 2024 budget were linked to the NNPC, emphasizing its ownership by the Federal Government and its responsibility to all three arms of the government.