The Nigerian National Petroleum Corporation has disclosed that it is fueling the nation at a loss, stressing that the controlled pump price rate of N145 per litre for Premium Motor Spirit. (PMS) or petrol is responsible for the huge hole in its books.
Group Managing Director (GMD), NNPC, Mele Kyari stated this on Wednesday when heads of revenue generation agencies and corporations met with the leadership of the Senate at the National Assembly complex in Abuja as part of the Senate leadership interface with the agencies.
Kyari said the pump price of petrol in Nigeria was over 70 per cent less than the price of N350, per litre in the neighbouring countries where the products were being smuggled to for higher profits.
The NNPC GMD expressed concern that Nigeria was yet to earn the volume of revenue it generates from crude oil from its gas production from its upstream sector investment. Kyari disclosed that daily production of crude oil has recently increased to 2.3million barrel daily production compared to 1.6m barrel recorded on daily basis in 2016.
He assured the senators that the NNPC would meet the revenue projection of the Appropriations Act as it was working tirelessly with the customs and security agencies in containing cross-border activities of oil smugglers.
Director, Department of Petroleum Resources (DPR), Rufai Ahmed Ishaku, urged the National Assembly to pass the Petroleum Industry Bill, saying it would significantly transform the oil and gas industry and generate revenue for the country.
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