Recall that the previous Minister of Finance, Zainab Ahmed, stated that subsidy payments would cease by June 2023 and budgeted N3,36 trillion for under-recovery payments.
During an appearance on Arise TV on Thursday, the NNPC director stated that the government must shoulder the cost of subsidy.
ALSO READ: 10th NASS: Tinubu, APC To Reconsider Zoning
In addition to the incapacity of the NNPC to fund subsidies, Kyari stated that the government has not provided the budgeted funds since the beginning of the year.
He said: “The key issue is the country does not have the money to back subsidy.
“There was a provision of N6.3 trillion in 2022 and N3.7 trillion in 2023 for up to half a year, but I can tell you that not a single naira of that has been funded and what did we do because by law we are obligated to pay taxes and royalties and other obligations but we held back the fiscal obligations of our shareholders because there was nothing to do.
ALSO READ: Tinubu Addresses His Supporters, Obidients, and Atikulators
“The burden of subsidy must be financed because the provision in the law simply means that the government will write a cheque to NNPC at the end of the month for the service that we’re providing to the nation. That cheque has not been written at all.
ALSO READ: Dele Momodu Speaks On Replacing Atiku Several Hours Following Tinubu's Inauguration.
“Absolutely, there is a provision in the budget but you do not have the cash to back it up or you also don’t have the fiscal obligation that should have come for the NNPC to settle for this and this definitely means that there is provision for the end of June, according to the appropriation act but you can’t give what you don’t have.”
Agbebaku Augusta 46 w
God save Nigeria