Addressing the Senate Committee on Finance on Wednesday at the National Assembly Complex, Kyari said oil marketers could not cope with price oscillation in the downstream sector and consequently took the option to refrain from importation.
Findings revealed that petroleum marketers under the platforms, Independent Petroleum Marketers Association of Nigeria, the private depot owners, otherwise called the Depot and Petroleum Marketers Association of Nigeria, and the Major Marketers Association of Nigeria, have boycotted importation decrying the fluctuation in the foreign exchange market which they noted is inimical to their survival and profit earnings.
The GCEO, NNPCL however dismissed the concern as he assured the lawmakers that nothing was amiss in the downstream sector despite his corporation’s monopoly of importation.
He said, “The oil companies withdrew because they can’t manage the oscillation and responsibility that the Petroleum Industry Act imposed on us. We have the market and I can assure you that we are managing this.
“Some marketers buy from us and sell. But there is an element that we can’t control. For instance, truck owners can adjust their prices, we have no control over that.”
Kyari further claimed that the distortion in the foreign exchange market which the marketers argued was a disincentive to their participation in the fuel importation business was nothing to worry about.
He said, “There is always a parallel market in every country. There is also an import and export window in every country, even in the developed world. But there is always a narrow gap between the two and it takes time for you to have stability in this gap so that you have a low margin between the two for a sustained period, then businesses will thrive.”
He added, “I am very confident that by the end of the first quarter of next year, those margins will narrow and stability will come and you will see others coming into the importation market.”
The GCEO and NNPCL further argued that contrary to media reports of unencouraging profit, the oil giant has been doing well since the passage of the PIA.
Kyari said, “The NNPC Limited is a creation of the National Assembly, requires that we conduct business transparently and profitably in line with provisions of the law and to create value for shareholders, and not to lose money, and also to continue to add value and pay dividends to shareholders.
“I’m glad to inform you Mr Chairman and Distinguished Senators that as of October we were able to deliver N4.5 trillion Naira into the federation account as a company to this country in 2023.
“Every national oil company has a trading company. We have always had one that never worked before PIA Implementation.
“Currently NNPC Ltd is delivering on its mandate through the PIA reforms that have brought us to be at par with our peers, across the globe, and not to lose money anymore,” the NNPC boss added.
