NNPC - Nigerian National Petroleum Corporation is on the move for the removal of payment of subsidy from petroleum products in Nigeria..
According to punch story :
Although the corporation admitted that it was aware of the massive nationwide protests and industrial actions that took place in January 2012 when the Federal Government announced the complete withdrawal of subsidy on petrol, it however maintained that the continued payment of subsidy was not sustainable.
Today,Thursday April 23rd, 2015. When Speaking at the 2015 Oloibiri Lecture Series and Energy Forum organized by the Society of Petroleum Engineers in Abuja, the Group Coordinator, Corporate Strategy and Planning, NNPC, Mr. Timothy Okon, noted that :
when crude oil prices came down to about $40 per barrel, subsidy was not paid during that period as the landing cost of the product was either equal of even lower than its market value.
Okon explained that subsidy on petrol creates uneven distribution of revenue, round tripping and unnecessary carry-over of funds from one year to another in a manner that was difficult to control by the Federal Government.
"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. .
Credit : Punch
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