Petroleum minister, Timipre Sylva, Makes Significant Statement on Fuel Subsidy, Nigerian Economic Situation

• Timipre Sylva, the Minister of State for Petroleum, said removal of fuel subsidy will ensure the progress of the country, so it should be removed
• Sylva said the Federal Government should make Nigerians carry the full cost burden of fuel production, and not subsidise the price for the citizens
• The Nigerian minister stated that if the government continues to pay fuel subsidy, the rehabilitation of refineries would not benefit the economy

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The Minister of State for Petroleum Resources, Timipre Sylva, says fuel subsidy must be removed for the country to progress, stating that the government can't keep lifting the burden Nigerians.

Sylva said the fuel subsidy being paid by the Federal Government is the reason for the bad economic situation in the country. He said it should be removed.

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The minister said the repair of the refinery will add no value to the economy if FG continues to bear the cost of fuel which is meant to be paid by the consumers.

He explained that the government pays N5 for every N10 petroleum production cost, and for the refineries to function commercially, subsidising must be stopped.

What Sylva had to say

Sylva made it known while speaking at the NAN forum on Sunday:

“I will say that my stand on fuel subsidy and deregulation is well known. I strongly believe that for this country to move forward, for our economy to make the progress it desires, we need to have a market-driven pricing of products.

He stated separately that:

“So, the losses increase and compound on a daily basis and those accumulated losses have brought us to where we are.”

Adding that:

“If you are producing something and they are selling at a certain subsidised price, it cannot work that is why you see that the sector is not growing at all."

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Meanwhile, Legit.ng had previously reported that the Nigerian National Petroleum Corporation wants to spend $1.5 billion to rehabilitate the Port Harcourt refinery.

NNPC has obtained President Muhammadu Buhari's approval despite criticism from some quarters. The rehabilitation is meant to take place in three phases.

An Italian company, Tecnimont Spa, will be in charge of the rehabilitation which will take place in 18, 24 and 44 months.

Source: Legit.ng