Home Business Refineries Not Created To Reduce Petrol Price, Kyari Tells Senate 

Refineries Not Created To Reduce Petrol Price, Kyari Tells Senate 

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The Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari, appeared before the Senate joint committee on appropriations on Friday, following a 24-hour ultimatum issued to him on Wednesday.
The Chairman of the Senate Appropriation Committee, Senator Adeola Olamilekan, had on Wednesday, directed Kyari to appear before the committee in 24 hours in company of the Executive Secretary of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, and warned that failure to do so, undermines the legislature and sabotages the process.
The Red Chamber had observed that Kyari, who was recently reappointed by President Bola Tinubu, had on previous occasions, shunned summons by the Senate to appear before its ad- hoc committee probing over N11 trillion expenditure on turn around maintenance of Nigeria’s refineries between 2010 and 2023.

The duo of Kyari and Komolafe were required to present the list of all individual companies operating with OML licenses in Nigeria as well as total production output approved on a daily basis.

The lawmaker had expressed concerns that some of the revenues required to drive the 2024 budget was attributed to the NNPCL, which according to him, was owned by the Federal Government and responsible to it, and by extension the three arms of government.

Responding to questions by the senate committee on appropriations on the potential drop in pump price of petroleum owing to the expected functionality of refiner2023.the NNPCL boss explained that it might be possible to have a reduction, but it is not the main objective of the refineries.

He insisted that maintaining the energy security target has fostered the confidence that in 2024, Nigeria will become a net exporter of petroleum products.

Channels Television reports that the NNPCL boss affirmed that no subsidy is charged to the federation, adding that the NNPC has contributed N4.45 trillion as direct revenue into the federation in a combination of taxes, royalties and dividends and paid 406 billion naira as dividend to Federal Government’s account from July 2023.

Kyari also noted that Nigeria does not have credible data for PMS consumption in the country because of the absence of the instrument to measure.

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