Sundiata Post gathered that the new arrangement when fully in place will create opportunities for Nigerian businesses to partner with NNPC in storage, marketing and distribution. Nigeria is expected to save over $1 billion in revenue.
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While stressing the advantage of the new arrangement, Minister of State for Petroleum Resources and the GMD of NNPC, Dr Ibe Kachikwu said transparency and accountability are key attributes of the new arrangement.
In January 2016, the Federal Government adopted a price modulation approach to capture full value of the fall in oil prices, the effect of which has resulted in appreciable revenue savings due to zero subsidy claim for imported petroleum products. It is gathered that the Federal Government had in 2015 spent 1.1 trillion naira on fuel subsidy.