The Nigerian National Petroleum Company Limited, NNPCL on Friday, February 17 announced that the amount spent as subsidy on Premium Motor Spirit, PMS aka petrol, had exceeded N400bn monthly.
The NNPCL Group Chief Executive Officer, Mele Kyari, who disclosed at the Headquarters of the oil firm had explained that the oil company was spending approximately N202 as a subsidy on every liter of petrol bought across Nigeria. Kyari also reiterated that about 65 million liters of PMS were pumped daily into the market by the petroleum company.
Even though the oil company will keep meeting its obligations by providing PMS for the country, Kyari had pointed out that more than N400 billion monthly subsidy had been a great strain on the NNPCL’s cash flow.
Recall that the NNPCL is the sole importer of petrol into Nigeria and has been playing the role for several years. This is because other private oil marketers who had ventured into the Nigerian market had stopped importing petrol into the country because of the difficulty in accessing the United States dollars, a requirement for the importation of PMS.
