Maikanti Baru, Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), disclosed on Friday that President Muhammadu Buhari authorised the oil corporation to subsidise petrol for Nigerians.
Mr. Baru spoke to State House correspondents at the Presidential Villa shortly after he performed Friday Islamic prayers. He was reacting to the confusion thrown up by his revelations in Abuja last Friday.
Last Friday, the NNPC chief disclosed that the landing cost of petrol has jumped to N171 per litre raising posers as to who takes care of the N26 difference since the selling price was pegged at N145 per litre. Provision for such payment was not even captured in the 2017 and 2018 budgets.
But on Friday, Mr. Baru said President Buhari authorised the payment of the ‘subsidy’ by NNPC, to ease the pains of Nigerians.
“Do you want me to remove subsidy?” he said in response to questions demanding clarifications on the subsidy.
“What I am saying is that the landing cost as should be sold in the pump without under-recovery should be N171.40.
“However Mr. President has directed that we should maintain all the parameters to ensure that it is sold at N145 per litre. And that is why we are selling at depot at N133.28.8,” he explained.
Many Nigerians have been asking questions as to where the NNPC was getting the funds to pay subsidy.
Ekiti State Governor, Ayodele Fayose, asked on Wednesday: “Where is NNPC getting the money with which it is subsidising petrol with N26 per litre? Is NNPC spending money from the sales of crude oil that should be paid into the federation account to pay subsidy?”
The NNPC is yet to provide an answer.