Nigeria sells oil at the cheapest price in West Africa, says Group Managing Director (GMD) of Nigeria National Petroleum Corporation (NNPC), Mele Kyari.
Speaking at the Senate yesterday, Kyari lamented over the N145 per liter fuel price in Nigeria, noting that the low fuel price and smuggling, are the two key factors hampering high revenue generation of the agency.
He said: “The N145 per litre fuel price regime Nigeria runs against the N350 per litre most of the other west African countries operate, encourages smuggling, which invariably affected revenue generation for the agency and by extension the country. It is even very difficult for us to make the Petroleum Product available at N145 ”
He however assured that before the end of 2019, the NNPC would meet the revenue projection of the appropriations act, as they were working to check cross border activities of oil smugglers in collaboration with the customs and other security agencies.
In his remarks, President of the Senate, Senator Ahmad Lawan told the executives of the revenue agencies that the purpose of the collaboration, was to gear them up in making more revenues for the government for effective and efficient budget implementation.
He further decried the increasing level of debt and borrowing in Nigeria, when the country has the resources it needs to be self-sufficient.
“It is very worrisome that the country within the last few years, have been resorting to borrowing from external lenders for implementation of capital components of the yearly budget”, Lawan said.
“This is not good for the country economically when we have agencies that can assist in generating revenues at home for execution of such projects. What is happening today is not healthy and must be critically addressed by all stakeholders involved”, he added.