…By Dorcas Funmi for TDPel Media. Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, has disclosed that the Muhammadu Buhari Government did not provide funding for petrol subsidies in 2022 and 2023, despite the inclusion of budgetary allocations.
Government’s Subsidy Payment Plan:
Former Minister of Finance, Zainab Ahmed, had previously announced that subsidy payments would cease by June 2023, with a budget allocation of N3.36 trillion intended to cover under-recovery costs.
Financial Responsibility and Unfulfilled Funding:
During an interview on Arise TV, Kyari emphasized that the burden of subsidy must be borne by the government.
He further noted that the budgeted funds had not been provided since the beginning of the year, in addition to the NNPC’s inability to finance the subsidies.
Government’s Failure to Fulfill Obligations:
Kyari explained that despite the provision of N6.3 trillion in 2022 and N3.7 trillion in 2023, not a single naira of those funds had been disbursed.
He highlighted the challenges faced by the NNPC in meeting its fiscal obligations, as the government had not fulfilled its financial commitments.
Implications and Financial Constraints:
The CEO stressed that the subsidy burden must be financed, as outlined by the law, which mandates the government to issue a monthly payment to the NNPC for the services it provides to the nation.
However, no such payments have been made thus far.
Fiscal Constraints and Budgetary Provisions:
While there is a provision in the budget, Kyari emphasized that the lack of cash and fiscal obligations prevents the government from fulfilling its subsidy commitments.
He stated that although the appropriation act sets a provision until the end of June, it is impossible to provide what one does not possess.
In summary, despite budgetary provisions for petrol subsidies, the Nigerian government has not provided the necessary funding, leaving the NNPC and the burden of subsidy unsupported.