NNPC CEO Mele Kyari Faces Senate Probe On Refinery Expenditure, Clarifies On Petrol Price Reduction

NNPC CEO Mele Kyari Faces Senate Probe On Refinery Expenditure, Clarifies On Petrol Price Reduction....KINDLY READ THE FULL STORY HERE▶

Written By Oshiobuie Omo-Ikirodah

In a much-anticipated appearance before the joint committee on appropriations, Mele Kyari, the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company (NNPC) Limited, addressed queries from the Senate regarding the expenditure on turnaround maintenance of refineries in the country. CONTINUE READING

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Summoned 48 hours after the Senate issued an ultimatum, Kyari clarified his stance on the potential drop in the pump price of petroleum following the expected functionality of refineries. While acknowledging the possibility of a reduction, he emphasized that it is not the primary objective of the refineries.

The Senate had expressed concerns about Kyari’s previous reluctance to appear before its ad-committee probing over 11 trillion naira expenditure on refinery maintenance between 2010 and 2023. The recent appearance was a response to the 24-hour ultimatum issued by the Senate.

Responding to questions from the Senate committee on appropriations, Kyari explained that the refineries are primarily focused on maintaining energy security, expressing confidence that by 2024, Nigeria will become a net exporter of petroleum products.

Kyari asserted that no subsidy is charged to the federation, highlighting that NNPC has contributed significantly to the federation’s revenue. He disclosed a direct revenue contribution of 4.45 trillion naira through taxes, royalties, and dividends, with an additional 406 billion naira paid as dividends to the Federal Government’s account since July 2023. CONTINUE READING

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On the issue of credible data for Premium Motor Spirit (PMS) consumption, Kyari pointed out the absence of the necessary instruments for measurement in the country.

The Chairman of the Senate Appropriation Committee, Senator Adeola Olamilekan, emphasized the importance of Kyari’s appearance, warning that failure to comply undermines the legislature and hampers the legislative process. The committee also directed Kyari to appear alongside the Executive Secretary of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Senator Olamilekan expressed concerns about the attribution of revenues required for the 2024 budget to NNPC, a government-owned entity responsible to the Federal Government and, by extension, all three arms of government. The committee sought detailed information, including a list of companies operating with OML licenses in Nigeria and their daily approved production output.

Source: Bushradiogist