The Nigerian National Petroleum Corporation (NNPC) has stated that the Federal Government will make provisions for subsidy in 2022.
Mr Mele Kyari, the NNPC Group Managing Director, revealed this on Wednesday at a Senate Committee on Finance public hearing on the 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP).
Despite the fact that there was no provision for fuel subsidies in 2021, he informed lawmakers that the government had begun discussions with relevant stakeholders about ending the subsidy regime.
The NNPC chief, on the other hand, stated that the process may take a long time to complete, necessitating the need to reintroduce subsidy in the 2022 budget.
Adeola Olamilekan, the Chairman of the Senate Committee on Finance, expressed concern about revenue generation in order to reduce borrowing to fund the budget.
Legislators also want government agencies to focus equally on revenue generation and spending government funds.
As part of the process to prepare the 2022 budget, the Senate will hold a three-day public hearing on the 2022-2024 MTEF/FSP.
The MTEF establishes the parameters by which the budget is prepared, including the government’s borrowing plan, which proposes a crude price of $57 per barrel and daily oil production of 1.88 million barrels.
The NNPC chairman appeared before members of the House of Representatives Committee on Finance on Wednesday last week for a similar hearing on the 2022-2024 MTEF/FSP.
He said during the session that once the Petroleum Industry Act (PIA) is fully implemented and the Dangote Refinery begins operations, Nigeria will stop importing Premium Motor Spirit (PMS), also known as gasoline.
Kyari, who was also asked about the Dangote Refinery, defended the federal government’s equity stake in the facility.
Taking equity in Dangote Refinery, he claims, was a wise decision because the country now has a venture that will ensure the production of millions of litres of gasoline.