NNPCL: Subsidy Removal Freed Funds For Infrastructure, Jobs – Northern Youths

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

The group said the ₦7.13 trillion recorded as energy security expenditure in NNPCL’s audited financial statements should be considered within the context of the company’s obligations to guarantee energy supply and stability.

In a statement issued on Tuesday by its National President, Alhaji Abubakar Ibrahim, and National Secretary, Comrade Abutu Ainoko, the organisation said the publication of the audited accounts had provided Nigerians with an opportunity to scrutinise the figures and understand the basis of 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 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.”

NYG said the Petroleum Industry Act provides a framework under which NNPCL could incur expenses while performing its role as an energy supplier of last resort, with qualifying costs borne by the federation.

The group said the audit report indicated that part of the expenditure resulted from exchange-rate differences between the rate used to determine the ex-coastal price of Premium Motor Spirit and the rate prevailing when import obligations were settled.

According to the organisation, those factors provided important context to 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 said.

It added that explanations contained in the audit relating to under-recovery, exchange-rate differentials and other energy-security costs should form part of any assessment of the figures.

The northern group also backed President Bola Tinubu’s removal of the petrol subsidy, arguing that the policy had reduced the amount of public resources spent on subsidising fuel consumption.

It said the reform had created opportunities for government to redirect resources into critical infrastructure, employment-generating programmes and productive sectors of the economy.

“The removal of the fuel subsidy has not been without hardship,” the organisation acknowledged.

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

NYG argued that funds previously committed to subsidy payments could be invested in roads, healthcare, education, security and energy infrastructure.

The organisation, however, said the success of the subsidy removal would ultimately depend on how transparently and responsibly the resulting revenues and savings were managed.

“The long-term success of subsidy removal will ultimately depend on how responsibly the resulting revenues and savings are utilised,” it 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 maintain transparency in the management of petroleum-sector revenues and ensure that Nigerians could clearly identify the benefits of the reforms.

NYG also called for sustained regulatory and public scrutiny of NNPCL’s finances.

It said questions surrounding expenditure involving public resources should be addressed through facts, documentation and established accountability mechanisms.