Bayo Onanuga, presidential aide, says the Nigerian National Petroleum Company Limited (NNPCL) admitted to having financial constraints because it can no longer subsidize petrol.
Onanugu, the Special Adviser on Information and Strategy to President Bola Tinubu, disclosed this in a post on X on Tuesday.
He said if the NNPCL continues to pay the difference between the landing cost and petrol price, the national oil company will go bankrupt.
Onanuga said NNPC’s debt was a result of the company’s efforts to absorb rising petrol costs and protect Nigerian consumers, rather than any government deception.
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“NNPC cried out recently because it can no longer sustain the price differential on its balance sheet without becoming insolvent,” he said.
“The situation has greater implications for the ability of the three tiers of government to function as the NNPC has failed to pay into the Federation Account, the money that should go to the government.
“There are no easy choices. Something must be done to make NNPC survive, and keep the engines of government running and petrol flowing at the pumps.
“That is the scenario that is unfolding, and the game changer and big relief giver may well be the Dangote refinery and other local refineries, which will become the fuel suppliers to the local market.
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“When Dangote Refinery and other refineries, including government-owned Port Harcourt Refinery, come fully on stream, our country and economy will benefit on all fronts. There will be many good paying jobs that will be created along the value chain.”
According to Onanuga, there will also be a drop in the huge demand for foreign exchange to import petroleum products.
Earlier, the NNPCL increased the price of petrol to N855 per litre, but the landing cost of petrol was around N1,200.