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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