Responding to a question on whether the Federation Account was receiving proceeds from the Nigerian National Petroleum Company (NNPC) since the federal government had announced removal of fuel subsidy, the minister said, “Subsidy is gone technically. We do not have provisions for subsidy in the 2024 budget. What we have is a situation in which we have a combination of factors.
“The spike in the exchange rate as a result of the foreign exchange market reforms sent the exchange rate to the roof. It left NNPC in its role, by law, to ensure energy supply with fuel supply.
We must remember that a resolution will come and while looking at the whole resolution of that situation, we must be reminded that as of today, an important factor is that the cost per litre of petrol in our neighbouring countries is- West and Central Africa is three, four times of what it is here.
That is a direct transfer of the wealth of Nigeria; of foreign exchange of Nigeria to our neighbours. Done illegally, illicitly and for the gain of a few people. That is what we need to reflect on as we look at the situation in the downstream sector of the oil industry.
