Friday, 21 August 2015

Nigerian Economy can not support subsidy.....NNPC Boss, Ibe Kachichukwu

The group managing director of NNPC, Dr Ibe Kachichukwu made the following statements while giving a keynote address at the National Association of Energy Correspondents (NAEC) Conference. He was represented by Mrs Bolanle Ashafa.

"Subsidy creates distortion in government revenue distribution as a result of round-tripping and unnecessary carryover of expenditures every year in a way that is difficult for government to control or sustain.

Subsidy accounted for 20 per cent of the federal government budget in 2013. Implementation of the policy will entrench efficiency in product usage, product availability and effective competition among investors, hence ending products shortage.
However, critical enablers such as security of supply and distribution infrastructure must be assured to guarantee the availability of the petroleum products at affordable prices.

Removal of price control mechanisms is deemed imperative to ensure full growth of the sub-sector, by allowing private stakeholders to complement the effort of government in developing the industry”.

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