President Muhammadu Buhari signed the long- awaited Petroleum Industry Bill (PIB or ” the Bill” ) 2021 into law on August 16, 2021. Femi Adesina, the Special Adviser to the President on Media and Publicity, verified this in a statement.
The President’ s signing of the bill into law comes after it was passed by both the Senate and the House of Representatives earlier in July 2021.
As a result, the newly enacted Petroleum Industry Act of 2021 (PIA) is intended to boost investor confidence in Nigeria’ s petroleum industry while also increasing job prospects for the local population.
The common Nigerian may not understand the consequences of the bill rather what is particular to them is if the price of Petrol will remain stable.
But with the proposed removal of subsidy and the change in price from the current price to a proposed N340/litre.
Nigerians could remember the campaign promises of the current administration before its first tenure to reduce the N65 price of fuel to N50 but it has never dropped the price of petrol rather it gains exponential increase.
NNPC Reveals How Much Nigerians May Pay For Litre Of Petrol After Subsidy Removal In 2022
Nigeria should be rid of the subsidy regime by the end of February 2022, according to Malam Mele Kyari, Group Managing Director and Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC).
The NNPC boss said this at the World Bank’ s Nigeria Development Update, November 2021 edition, headlined ” Time for Business Unusual, ” according to Vanguard.
According to PM News, Kyari noted that from February 2022, there will be no legal provision for subsidy.
He, on the other hand, stated that the Nigerian government has a greater social obligation to provide for the common man and that the subsidy regime will be phased down most delicately and painlessly possible.
Fuel subsidy elimination, he claimed, will be completed in 2022 because it was now backed by law.
After the subsidy is removed, the price of the product might range between N320 and N340 per litre, according to the NNPC boss.
NNPC: Report Reveals Billions Of Naira Petrol Subsidy Gulped In 7 Months
Remember that, according to an NNPC report, petrol subsidy payments totalled N714 billion in the last seven months, reducing monthly revenue accrued to the federation account.
The underpriced sales of premium motor spirit (PMS), sometimes known as gasoline, are the subsidy or under- recovery.
According to JoseyWrites, the document discovered revealed that the country had paid N714. 79 billion so far this year to cover the cost of petroleum shortfall, commonly known as under- recovery.
NNPC paid N25. 37 billion in February for the under- recovery of PMS/value deficit, according to a document documenting the national oil company’ s statement at the September 2021 Federation Account Allocation Committee (FAAC) meeting.
For the same objective, it spent N60. 39 billion in March, 61. 99 billion in April, N126. 29 billion in May, and N164. 33 billion in June.
This is the most significant element affecting federal allocations to government accounts.
Remember that the NNPC reported total crude oil and gas export sales of $219. 75 million in May 2021, up 180. 29 per cent from the previous month of April 2021, according to an NNPC report on Facebook.
According to a press release from Mr Garba Deen Muhammad, Group General Manager, Group Public Affairs Division of the Corporation, this was contained in the NNPC Monthly Financial and Operations Report (MFOR) for May 2021.
Governors Back Subsidy Removal, Says El- Rufai
Meanwhile, the governor of Kaduna state, Malam Nasir El- Rufai, has stated that state governments support the federal government’ s intention to phase off petroleum subsidies.
He made the revelation during the presentation of the World Bank Nigeria Development Update, November 2021 edition, on Tuesday, November 23 in Abuja.
Mr El- Rufai stated that unless the fuel subsidy regime is abolished, 35 of the 36 federation states may be unable to pay salaries in 2022.
According to him, kerosene, which is most significant to the general public, has long been regulated, while diesel, which is most vital to carriers, has also been regulated.
” This hullabaloo about petrol is something that we must as a country have a conversation and agree that it has to end.
El- Rufai stated that the government cannot continue to send gasoline to our neighbours, as it currently does.
” Why are we doing this? For whom are we doing it? Who is the beneficiary? Which is the cabal that is the beneficiary of this and why should they hold this country to ransom and bankrupt the Nigerian economy?
” Right now, we are losing N250 billion a month and this has to end. State governments are committed to supporting the Federal Government on this.
” We do our bit, engage stakeholders and put the facts on the table so that everyone understands the danger the country is in if the subsidy continues, as well as the benefits that will accrue.
” Not only to the budgets of the states and their capacity to deliver social services, but also what will go directly to the pockets of the poorest Nigerians that will bear the brunt of any withdrawal of subsidy. ”
Mr El- Rufai stated that this is the attitude of the state governments, admitting that the governors only convened a few days ago to adopt this stance.
Similarly, Marco Hernandez, the World Bank’ s Lead Economist for Nigeria, stated that the petrol subsidy is not only expensive, but it also mostly helps the wealthier households.
FG To Replace Fuel Subsidy With N5, 000 Transportation Grant For 40m Nigerians
Meanwhile, Zainab Ahmed, Nigeria’ s minister of finance, budget, and national planning, has announced that the subsidy will be replaced by a monthly transportation stipend of N5000 for the poorest Nigerians.
The exact number of recipients, according to the minister, would be determined by the resources available when the fuel subsidy is eliminated.
It is unclear whether the recommended sum for the impoverished and most vulnerable Nigerians was provided for in the National Assembly’ s existing budget for 2022.
According to the Leadership newspaper, the minister made the statements at the opening of the World Bank Nigeria Development Update on Tuesday, November 23.
The ultimate number of potential beneficiaries, according to the finance minister, will be determined by the resources available when the gasoline subsidy is removed, implying that the government does not yet have a clear execution strategy for dividing the N5, 000 palliative.
She estimated that between 20 and 40 million people in the country are among the poorest and that they will benefit.
The Nigerian National Petroleum Corporation (NNPC) has indicated that the passage of the Petroleum Industry Act (PIA) will transform the country’ s oil and gas industry.
The PIA’ s operationalization, according to an NNPC official named Bala Wunti, will offer certainty, competitiveness, and cost optimization to Nigeria’ s oil and gas industry.
” A new date for the inauguration of the Board will be announced in due course.
” We deeply regret inconveniences caused to members by this suspension, please. ”
President Buhari nominated the new board members of the Nigerian National Petroleum Corporation (NNPC) in September.
Former senator Ifeanyi Ararume was named Chairman of the Board, while Umar Ajiya was named Chief Financial Officer by the president.
Mele Kyari, the NNPC’ s Group Managing Director, was also named Chief Executive Officer and a member of the new board.