Buhari authorised NNPC to subsidise petrol for Nigerians – Baru

Maikanti Baru and President Buhari. [Photo credit: New Mail Nigeria]

President Muhammadu Buhari authorised the Nigerian National Petroleum Corporation, NNPC, to subsidise petrol for Nigerians, Maikanti Baru, the NNPC chief has said.

Mr. Baru made this known on Friday during a brief interview with State House correspondents at the Presidential Villa shortly after he performed Friday Islamic prayers.

The NNPC chief was reacting to the confusion thrown up by his revelations in Abuja last Friday.

Last Friday, the NNPC boss stirred the hornet’s nest when he disclosed that the landing cost of fuel has jumped to N171.

The state oil firm has, however, maintained that the N145 per litre price subsists, raising questions on who foots the bill of the minimum N26 differential; especially as such estimates are not contained in the 2017 and 2018 budgets.

On Friday, Mr. Baru said Mr. Buhari authorised the payment of the ‘subsidy’ by NNPC, to ease the pains of Nigerians.

“Do you want me to remove subsidy?” he said in response to questions demanding clarifications on the subsidy.

“What I am saying is that the landing cost as should be sold in the pump without under-recovery should be N171.40.

“However Mr. President has directed that we should maintain all the parameters to ensure that it is sold at N145 per litre. And that is why we are selling at depot at N133.28.8,” he explained.

The NNPC’s confirmation of petrol subsidy has drawn the ire of some Nigerians including the Ekiti State Governor, Ayodele Fayose.

“Where is NNPC getting the money with which it is subsidising petrol with N26 per litre? Is NNPC spending money from the sales of crude oil that should be paid into the federation account to pay subsidy?” Mr. Fayose, a known critic of President Buhari, said on Wednesday.

On Friday, the NNPC chief also blamed “greedy” marketers who, he said, chose to hoard the product after rumours of pump price increase emerged leading to the scarcity experienced in recent weeks.

Nigerians have had to confront scarcity of petrol in the last three weeks, a development that has ruined the plans of many for the yuletide.

The NNPC has consistently blamed oil marketers for hoarding the product while the marketers on their part have said that they had no supply.

On Friday, Mr. Baru also said his corporation has been able to resolve the petrol scarcity.


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  • smart G

    It is very laughable that Buhari who vehemently denied that Nigeria was paying subsidy to keep fuel at N86 can now come to order subsidy paid even when fuel is officially sold at N145.
    Those who deceived him that fuel should sell for 40 are hiding in shame. TDW show your face.

    • Powerlessconscious

      So what is your anger?

  • Village Elder

    @disqus_qTHY84we0i:disqus;

    A witness to something called LAI MUHAMMED

    WHERE IS LAI MUHAMMED; the inveterate liar without any scintilla of integrity, a horrifying creature
    to behold by children whose young minds cannot comprehend ugliness in excelsis – where is he?
    It was Lai Muhammed who came out last year to say we should support Buhari to increase fuel
    price from 86 Naira per litre at the petrol station to 145 Naira per litre at a-go because, as he
    said, it was a step to eliminate subsidy once and for all and eliminate all fraud in subsidies.
    Now, the truth has come out. Buhari did not eliminate any subsidy but only just deepened
    mass poverty in Nigeria because subsidy is still being paid by the NNPC under the table.

    • musa aliyu

      Maybe you need to go to school, not to learn manners, for you are beyond redemption, but to learn English. The subsidy is just ordered to be maintained, now, on t that it has been around since its cancellation. And is it not market forces that determine the PRI e of the crude? Mtchewww!!!

  • Gary

    Well, there you have it: Maikanti Baru just threw Yemi Osinbajo under the bus and indirectly called him a liar!
    The NNPC GMD has now publicly refuted the Vice President’s claim that the government has nothing to do with any subsidies provided by the corporation it’s importation or marketing of fuel. Baru, again, says he got approval from the only person who matters to him in government: Buhari.
    In effect, this is the latest proof that in the APC regime, some people make things happen, some watch things happen and others wonder what is happening around them.
    Na Boju-boju government we get from Buhari and him people.
    Osinbajo & Co Southerners are there just for Federal Character. And to assist Lai Mohammed tell tall tales.

    • man

      you know the apc govt is filled with incompetent people. a private company will log this as a loss, but as a state corporation, it receives some funding from the govt. i suppose it is subsidy in a way. reallyy, why does this scarcity happen all the time? when it rains, transporters raise their fares, marketers raise their prices during xmas. greed everywhere.

      • Powerlessconscious

        Tue scarcity is purely sabotage. We know the saboteurs.

    • grand maze

      I can’t fault your position one bit

      • Gary

        Imagine the disrespect of publicly refuting a statement made by the VP in order to undermine his credibility.
        Is anyone still in doubt that the country is being run by a sectional cabal to the detriment of the rest of Nigeria?
        Sooner or later Tinubu and his acolytes will lift their heads above the sands of self-delusion..

        • Powerlessconscious

          What is your stance? Buhari is petroleum minister. He belongs to ministry of petroleum and belong to executive.

          So what is your anger that petrol ministry helped Nigerians?

    • Jide Ojetunde

      What has been refuted here? Did you expect NNPC to pay subsidies without Buhari who is the defacto petroleum minister’s approval? What the VP said was that NNPC was bearing the difference in price directly as the sole importer of fuel. They buy at higher price ( since the price have risen in the international market) and sell at reduced price to depots so it can still be sold to Nigerians at N145. We all know there is no provision for subsidy in the 2017 budget. Nigeria now make more money from crude oil sales than projected for 2017, this same situation has made the prices of fuel to be increased in the international market. Instead of allowing prices of fuel to increase in the country and increase the hardship faced by Nigerian, the Government decided to pay the difference from the excess money made that would have all gone into the excess crude account. Is this so difficult to understand? Why do we allow sentiments to rob us of sound judgement all the time?

      • William Norris

        You’re the one talking RUBBISH.

  • The Optimist

    why did they earlier tell the nation that subsidy had been removed? Deceiving the nation? I thought Buhari once said that subsidy was being used to steal money? Joining them if you can’t beat them? Is APC now ‘stealing’ ahead for 2019? It did not help GEJ and surely will NOT help GMB. We don’t want their subsidy! Let it be withdrawn completely and forever. We will survive it.

  • udofiapeter

    A boastful farmer without a bountiful harvest is a curse. You cannot lie during harvest but you can lie during planting season.

  • So oju abe niko

    The actual subsidy is N38.12 /L (N171.40- N133.28), not N26.40. Just wanted to point that out. The politics of subsidy is the waterloo of many politicians. Whatever they do, they cannot win. The very affable Gowon is responsible for this mess. Petrol price was not uniformly regulated throughout the country until gentleman Jack came along. Since then, no government, no matter how determined , has been able to put the jinny back in the bottle. I urge you all to enjoy this moment, because you are about to start buying petro at triple the price within the next 2 years. Dangote refinery is about to open. As usual with everything Dangote touches, the price will go up significantly. There will be no more scarcity, but Dangote will raise price significantly to get his investment back in 2 to 3 years – something that will typically take 10-20 years in other clime. As usual, the government will bend over backward to ban imports, to ensure that Dangote has his monopoly.

    Nigerian cement is the basis of Dangote’s wealth, where Dangote has managed to continue to sell cement at the highest price of all African countries. In some African markets where Dangote operates, he is forced to sell the same cement as low as 1/3 of the Nigerian price because there is a healthy competition. The 2nd highest price of cement is in Ghana, where Dangote is also the majority supplier. Interestingly, about 1/3 of Cement sold in Ghana is made in Nigeria, but Dangote is still able to sell cement in Ghana at a slightly cheaper price than Nigeria, despite the additional transportation cost from Nigeria.

    • grand maze

      Educative

    • Tony Ezeifedi

      Gowon is not affable. He is a pretender. Somebody, who, after the war, instead of rehabilitating the victims of war, he seized their property. How did he expect them to survive. He expected them to line up on the streets and beg for alms. But the contrary happened. The people that claim to have won the war are the ones begging for alms all over the federation.

    • William Norris

      Dangote cement has competition from BUA, Lafarge and Unicem. Your complaints about Dangote are basically the same that were levelled against MTN and with time they’ve proven to be WRONG.

      Would you prefer that Nigeria resume cement importation to further increase competition?

      Sometimes high prices is the cost a nation must pay for progress. In the United States, healthcare is VERY EXPENSIVE. Cataract eye surgery in the USA costs about $20, 000 and more but you can get the same surgery done in India or Costa Rica for $3,000. Doctors and other healthworkers in the USA are well paid, the health sector is consistently one of the highest job creators in the USA. Do you understand?

      Your complaints about Dangote are basically the same that were levelled against MTN. What about the jobs created by these companies?

      Then of course there’s NOTHING that stops you from going to the Nigeria Stock Exchange and buying shares in Dangote Cement as I have done. So you can partake in the evil profits like I do.

  • Lanre

    There has never been a subsidy in the price of petrol in Nigeria. What Nigerians are paying for is this theft, corruption and stealing that has rendered all the refineries incapable of meeting local consumption. I believe firmly in God Almighty as a Christian and I know that all Nigerian Leaders that took part in the destruction of the refineries through criminal Turn Around Maintenance Contracts will pay for it. You can escape human justice but you can never, divine justice.