NNPCL: Northern Youths Applaud Subsidy Removal, Reveal Benefits For Nigerians

The Northern Youth Groups (NYG) has commended the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Bayo Ojulari, for what it described as transparency and accountability in the management of the national oil company.

The group said the ₦7.13 trillion recorded as energy security expenditure in NNPCL’s audited financial statements should be viewed within the context of the company’s responsibility to ensure energy supply and stability across the country.

In a statement issued on Tuesday by its National President, Alhaji Abubakar Ibrahim, and National Secretary, Comrade Abutu Ainoko, the organisation said the release of NNPCL’s audited accounts had given Nigerians an opportunity to examine the figures and understand the circumstances behind the expenditure.

“We commend the leadership of NNPCL under Bayo Ojulari for demonstrating transparency and accountability in the discharge of his duties,” the statement said.

The group added that the publication of the financial statements would allow Nigerians and other stakeholders to properly scrutinise the energy security expenditure.

“The publication of the audited financial statements provides Nigerians and stakeholders with the opportunity to understand the circumstances surrounding the energy security expenditure and to subject the figures to proper scrutiny,” it said.

According to NYG, the Petroleum Industry Act (PIA) provides a framework under which NNPCL can incur certain expenses while carrying out its role as the supplier of last resort, with qualifying costs borne by the federation.

The organisation said the audit report indicated that part of the expenditure was linked to exchange-rate differences between the rate used to determine the ex-coastal price of Premium Motor Spirit (PMS) and the rate applicable when import obligations were eventually settled.

It argued that such factors were important in understanding the disputed expenditure.

“Every expenditure involving public resources must be open to scrutiny. However, such scrutiny must be based on the complete facts and the applicable legal framework,” NYG stated.

The group further said explanations contained in the audit report regarding under-recovery, exchange-rate differentials and other energy-security costs should be considered when assessing the figures.

Northern Youths Back Fuel Subsidy Removal

The northern youth organisation also expressed support for President Bola Tinubu’s removal of the petrol subsidy, arguing that the policy had reduced the volume of public funds committed to subsidising fuel consumption.

According to the group, the reform has created an opportunity for government to redirect resources towards critical infrastructure, employment-generating programmes and productive areas of the economy.

The organisation, however, acknowledged that the policy had imposed significant hardship on Nigerians.

“The removal of the fuel subsidy has not been without hardship,” it admitted.

“However, it is equally important to acknowledge the economic opportunities created by the reform.”

NYG said funds previously allocated to fuel subsidy payments could instead be channelled into roads, healthcare, education, security and energy infrastructure.

It stressed, however, that the success of the subsidy reform would ultimately depend on how transparently and responsibly the resulting revenues and savings are managed.

“The long-term success of subsidy removal will ultimately depend on how responsibly the resulting revenues and savings are utilised,” the group said.

“Nigerians must be able to see the benefits through better roads, healthcare, education, security, energy infrastructure and other projects that improve living standards and stimulate economic growth.”

The group urged the Federal Government to sustain transparency in the management of petroleum-sector revenues and ensure that Nigerians could clearly identify the benefits of the reforms.

NYG also called for continued regulatory and public scrutiny of NNPCL’s finances, stressing that concerns involving public resources should be addressed through facts, documentation and established accountability mechanisms.