Fuel may sell for between N320 and N340 when subsidy is finally removed in 2022.
This hint was dropped on Tuesday by the Group Managing Director of the Nigerian National Petroleum Company (NNPC), Mele Kyari, while speaking at the presentation of the World Bank Nigeria Development Update, November 2021 edition titled “Time for Business Unusual” in Abuja.
According to Kyari, fuel subsidy removal would be achieved in 2022 as it now has the backing of the law.
He said that subsidy would have been eliminated in 2020 but certain factors prevented it.
He, however, said that the law provides that by the end of February 2022, the nation should be out of the subsidy regime.
“There will be no provision for it legally in our system, but I am also sure you will appreciate that government has a bigger social responsibility to cater for the ordinary and therefore engage in a process that will ensure that we exit in the most subtle and easy manner,” he said.
On the rising prices of cooking gas, the GMD said that it was a demand and supply issue as there was a global crunch on supply of gas and many countries were now threatened by lack of supply in December.
He added that the product was not under any subsidy regime and therefore irrespective of where it was produced, would follow the global trend.
Kyari, however, assured that the company was working on increasing local production to meet the needs of consumers.
Minister of Finance, Budget and National Planning, Zainab Ahmed, had at the event said Nigeria will remove fuel subsidy by 2022 and substitute the subsidy with N5000-a-month transportation grant to the poorest Nigerians.
The minister said the grant will be distributed to about 30 to 40 million Nigerians who make up the poorest population of the country.