The Group Managing Director of Nigeria National Petroleum Corporation (NNPC), Mallam Mele Kyari, has painted a picture of how Nigeria has been subsiding fuel for the whole West Africa.
According to him, “there are many things wrong with the under-recovery because it makes us to supply more than is needed. This makes the under-recovery to be bloated because we unwittingly subsidize fuel for the whole of West Africa. That has to stop.”
Mele Kyari, who was answering questions on Arise TV breakfast programme: “The Morning Show,” described subsidy as elitist.
“Subsidy is elitist because it is the elites that benefit from it. They are the ones that have SUVs, four, five cars in their garages. The masses should be the ones to benefit.”
He stressed that the decision to finally end the fuel subsidy regime “is in the interest of ordinary Nigerians,” adding that it would free up funds for the various tiers of government to develop basic infrastructure in the education, health, transport, and other sectors for their benefit.
According to him, the removal of subsidy would automatically correct the distortions it created in the market such as products arbitrage and smuggling.
Mele Kyari said that subsidy removal would also provide the needed impetus for the NNPC to establish retail outlets in neighbouring countries.