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NNPC cuts projects to sustain
fuel subsidy
By Bassey Udo
Snr
Correspondent,
Abuja
New projects have been put on
ice by the Nigerian National Petroleum Corporation (NNPC) to conserve
funds for the deregulation of the petroleum industry, particularly subsidy
on imported fuel.
Projects mostly affected
include those not directly related to the procurement and distribution of
products.
NNPC General Manager (Group
Public Affairs) Levi Ajuonoma denied knowledge of the decision, but a
source insisted that it is part of a management scheme to ensure its
commitment to get the pipeline network functional as well as restore
operations at the four refineries.
NNPC Group Managing Director
Funso Kupolokun is said to be sore worried that despite the completion of
the turn around maintenance (TAM) on the refineries since last August,
normal operations could not commence as a result of the inability to fix
the pipelines and restore oil supplies from Escravos to Warri and Kaduna
refineries.
�Management is worried that
the repair of the vandalised pipelines is taking so long despite the huge
amount so far spent. Until the repairs are completed and the refineries
made to function again, all other projects would have to wait�, the source
said at the weekend.
In line with the decision to
cut back on new projects, the construction of mega filling stations across
the federation has been suspended.
The stations were to
facilitate the availability of fuel products at official prices and check
profiteering by marketers.
Akwa Ibom State Governor
Victor Attah at the weekend expressed disappointment that one of such
filling stations planned for Uyo has been shelved because �money meant for
its execution has been used in subsidising the importation of petroleum
products�.
Said he: �NNPC promised to
build an ultra-modern filling station in the state capital. We have
already provided the land required for the project. I do not know why the
NNPC has not started work. Only two weeks ago, I was told that the money
meant for the mega station has been used in subsidising the importation of
petroleum products�.
Kupolokun had told the Senate
Committee on Labour and Productivity recently, in the wake of the last
nationwide strike by the Nigeria Labour Congress (NLC), that the NNPC
spends as much as between N370 million and N400 million daily to subsidise
fuel products.
He described it as
�unacceptable and unsustainable� and stated the NNPC would soon become
insolvent if urgent steps are not taken to save it from incurring such
heavy losses.
The reserves of the
corporation have been depleted through the losses, Kupolokun said, and
warned that the �NNPC may not be able to meet its obligations,
particularly payment of salaries of its workers at the end of the month if
the deregulation policy is not allowed to work�.
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