The Nigerian National Petroleum Corporation, NNPC, has called for the removal
of payment of subsidy from petroleum products in Nigeria. Speaking at the
2015 Oloibiri Lecture Series and Energy Forum organized by the Society
of Petroleum Engineers in Abuja today April 23rd, the Group
Coordinator, Corporate Strategy and Planning,
NNPC, Mr. Timothy Okon, said subsidy on petrol creates uneven
distribution of revenue, round tripping and unnecessary carry-over of
funds from one year to another in a manner difficult for the Federal
Government to control. He added that continuous payment of subsidy is
not sustainable.
"So, from the technical analysis made, it is obvious that
subsidy is real. And from our analysis, we look at it as something that
should go because it is not sustainable,” he said.
He said since
the federal government has no direct control
the prices of crude oil, the fluctuation in oil prices creates some
instability in the Nigerian economy which in turn affects negatively the
nations revenue generated from petroleum products.
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