The Nigerian National Petroleum Company Limited (NNPCL) says the country will not experience petrol scarcity in December and beyond, as it has made adequate arrangements for supply.
Its Chief Financial Officer, Mr Umar Ajia, said this in Abuja yesterday when he appeared before Ad Hoc committee of the House of Representatives on fuel subsidy regime in Nigeria.
Ajia said the company had put in place adequate measures to prevent petrol scarcity in the country, even after the 2023 general election.
“We have extended our Direct Sales Direct Purchase (DSDP) contract by six months, to sustain supply of PMS through the country.
“The DSDP contract in reality ended in August and it is very dangerous period to begin to retender for that because we are facing the winter, these are the difficult “ember months” that we normally avoid fuel scarcity.
“You know the scarcity in Nigeria is really associated with the Christmas period so if you now tender, the tendering process will take one or two months.
“So, what the board approved is to extend the contract for six month such that we have passed the winter and we have passed the election, otherwise we could have problems during the election,” he said.
The Chairman, Committee, Rep. Ibrahim Al-Mustapha (APC-Sokoto) said there was the need for an upward review of petrol price, in-line with the global price.
Al-Mustapha said that petrol was being sold for N536 per litre in Niger Republic, N577 per litre in Mali and N389 per liter in Benin Republic.
Ajia, however, said petrol subsidised for Nigerians was being smuggled to neighbouring countries saying that figures of petrol consumed in the does not necessarily represent the true picture.
He said as a result of the porous borders, subsidised petrol meant to be consumed by Nigerians go as far as Mali and other neighbourimg countries.
“If you have N5 million, you can cross the borders with trucks laden with petrol and that is the bitter truth, we have porous borders; yes we have customs but I do not know,” he said.
The committee went into a closed door session to further deliberate on the matter.