SAN FRANCISCO, September 04, (THEWILL) – Former Group Managing Directors (GMDs) of the Nigerian National Petroleum Corporation (NNPC) have declared that the petroleum price cap of 145 Naira per litre is not in tandem with the liberalisation policy of the Federal Government.
According to a statement by the NNPC’S spokesman, Garba Mohammed, the former NNPC GMDs made this position known at the end of a one-day meeting put together by the NNPC’S Group Managing Director, Dr Maikanti Baru.
They declared that the 145 Naira per litre price cap did not go well together with the liberalisation policy when factors such as the foreign exchange rate, crude cost and Nigerian Ports Authority charges remain uncapped and expressed concern over the declining production level of crude oil and its consequences on the environment and the nation’s revenue.
According to the statement, the former GMDs were also worried about the level of the NNPC’S debt profile and advised that, as a matter of urgency, the NNPC should establish the true state of its current financial status and immediately decide on the most appropriate capitalisation model.
Baru, at the meeting, stressed that if the current situation of declining crude oil production if left unchecked, could cripple the NNPC and the nation’s oil and gas sector with grave consequences.
He blamed the decline in production on activities of vandals and militants in the Niger Delta and urged the government and security agencies to engage the various host communities to develop a partnership framework to find a lasting solution to the present unrest.
Story by David Oputah
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