The Nigerian Government has said it will not immediately end its current subsidy regime but intends to manage the process to ensure that vulnerable Nigerians are not heavily impacted.
Minister of State for Petroleum, Timipre
Sylva gave this indication at a briefing in Abuja, to mark his two years in office.
Sylva noted that deregulation comes with a lot of changes, adding that it would not be advisable to suddenly remove the subsidy.
He admitted that the new Petroleum Industry Act has actually deregulated the sector, but said it would mean that there would be an immediate implementation of pricing.
The minister further disclosed that governors were asking for deregulation and by extension a price increase,noting that the implications would be a hike in price and access to more revenue from the federation account.
Contrary to the position of the Group Managing Director of the NNPC, Mallam Mele Kyari, that Nigeria consumes about 103 million petrol daily, Sylva described that figure as a “flash” which happens once in a while, pegging the figure at 52 million litres daily consumption on the average.
On the host communities’ fund, the minister explained that it was better to have three per cent of what the communities are sure of.
He described all the levies and taxes paid by oil companies as a balancing act, saying the new legislation has been fair to the host communities and pointing out that for the first time, there is now a pool of funds targeted at the host communities in this country.
Silva, who also spoke on the rising prices of cooking gas, said that the market has been fully deregulated, emphasising that government is no longer in business.
