Tonye Cole, co-founder of Sahara Group and the All Progressives Congress (APC) gubernatorial candidate in the 2023 Rivers State election, stated that the Nigerian National Petroleum Company Limited (NNPCL) is under significant pressure due to the burden of fuel subsidy payments and the responsibility of importing fuel.
In a recent interview with Channels Television, Cole addressed the ongoing debate about whether the Nigerian government is subsidizing fuel. Although NNPCL has claimed it doesn’t pay subsidies, instead covering the shortfall in fuel importation, Cole remarked that the company is heavily burdened with ensuring that petrol remains available to the public.
He pointed out that a large portion of NNPCL’s earnings is being used to manage this situation, which in turn impacts other operations, such as cash-calls and the company’s overall ability to function effectively. Cole emphasized that this pressure on NNPCL is directly linked to the challenges of fuel importation and the controversial issue of subsidies.
This discussion follows President Bola Ahmed Tinubu’s announcement in May of the previous year regarding the removal of fuel subsidies, which led to a sharp increase in petrol prices from around N238 to over N600 per liter. Recent figures from the Major Energies Marketers Association of Nigeria indicate that the cost of Premium Motor Spirit (PMS) has risen to N1,117 per liter, with fuel currently being sold at prices ranging from N617 to N800 per liter at various filling stations across Nigeria.
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