Bayo Onanuga, Special Adviser on Information and Strategy to President Bola Tinubu, has revealed that the Nigerian National Petroleum Company (NNPC) Limited is facing financial constraints due to its inability to continue subsidising petrol.
Gatekeepers News reports that Onanuga stated that if NNPC continues to pay the differences in landing cost and petrol price, the national oil company will go bankrupt.
“The situation has greater implications for the ability of the three tiers of government to function as the NNPC has failed to pay into the Federation Account, the money that should go to the government,” Onanuga said on Tuesday via X.
“There are no easy choices. Something must be done to make NNPC survive, and keep the engines of government running and petrol flowing at the pumps.”
Onanuga attributed NNPC’s debt to its efforts to absorb rising petrol costs and protect Nigerian consumers, rather than any government deception.
He also highlighted the importance of local refineries, such as the Dangote refinery, in becoming fuel suppliers to the local market and creating jobs along the value chain.
Regarding the federal government’s policy on petrol subsidy, Onanuga said that the government has been faithful to its policy of deregulating the petroleum sector.
He added that the government’s decision to remove the petrol subsidy was reflected in the 2023 supplementary budget, 2024 budget, and amended 2024 budget, where provisions for subsidy payments were absent.
