Kyari Appears Before Senate, Says Refineries’ Role Not Geared Towards Petrol Price Reduction

Following  Senate summons, Mele Kyari, the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company (NNPC) Limited, has appeared before the joint committee on appropriations, forty eight hours after being summoned, responding to inquiries about potential reductions in the pump price of petroleum with the expected functionality of refineries.
The Senate had issued a 24-hour ultimatum on Wednesday to the NNPCL boss after an observation that he had in previous occasions, shunned summons by the Senate to appear before its ad-committee probing over 11 trillion naira expenditure on turn around maintenance of refineries in the country between 2010 and 2023.
Kyari clarified that while a price reduction might be possible, it is not the primary objective of the refineries. He emphasized that maintaining the energy security target has instilled confidence that Nigeria will become a net exporter of petroleum products in 2024.
Addressing questions from the Senate committee on appropriations, Kyari affirmed that no subsidy is charged to the federation. He highlighted that the NNPC has contributed 4.45 trillion naira as direct revenue to the federation through a combination of taxes, royalties, and dividends.
Additionally, the NNPC has paid 406 billion naira as dividends to the Federal Government’s account since July 2023.
Kyari pointed out the absence of credible data for PMS (Premium Motor Spirit) consumption in Nigeria due to the lack of instruments for measurement.
The Senate Appropriation Committee, chaired by Senator Adeola Olamilekan, had earlier directed Kyari to appear within 24 hours, warning that failure to do so undermines the legislature and sabotages the process.
The committee requested Kyari, along with the Executive Secretary of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), to provide a list of individual companies operating with OML licenses in Nigeria, as well as the total approved daily production output.
Senator Olamilekan expressed concerns that some of the revenues crucial for the 2024 budget were attributed to the NNPC, owned by the Federal Government, responsible to it, and, by extension, the three arms of government.
Ada Peter

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