Fuel may cost between N320 and N340 a liter in 2022, according to Malam Mele Kyari, the CEO of the Nigerian National Petroleum Corporation (NNPC).
During a World Bank Nigeria Development Update, November 2021 edition presentation titled “Time for Business Unusual” in Abuja on Tuesday, he made this statement.
According to Kyari, gasoline subsidies will be abolished in 2022.
He stated that the law stipulates that the country should exit the subsidy regime by the end of February 2022.
“I am confident you will recognize that government has a higher social obligation to cater to the ordinary and so engage in a process that will ensure that we exit in the most delicate and simple manner,” he said. “But there will be no provision legally in our system,” he added.
He explained that the price of cooking gas had risen because there was a global shortage of gas and many nations were now at risk of running out of gas in December.
Furthermore, he stated that the product was not subject to any subsidy scheme, and hence would follow the global trend regardless of where it was produced.
As a result of this, Kyari informed customers that the company was working hard to increase local production.
This is according to Finance Minister Zainab Ahmed’s statement that Nigeria plans to withdraw fuel subsidies by 2022 and replace them with a monthly transportation payment for the poorest citizens of the country.
Nigeria’s poorest citizens would receive a stipend of between 30 and 40 million dollars, according to the country’s minister of finance.
It’s still “unsustainable and economically dishonest” to give oil companies subsidies, she said.
Fuel subsidies will be completely eliminated by the middle of 2022, and we are working with our partners to prepare for any negative consequences that may result, especially for the poorest 40 percent in society.
For example, between 30 and 40 million worthy Nigerians may get a monthly N5,000 transportation subsidy in the form of a cash transfer.