5 things Kachikwu Told Reps Members during Today's Meeting

Ibe Kachikwu

There had been reports earlier today that some lawmakers on the platform of the Peoples Democratic Party (PDP) refused to allow the minister into the House for any explanations on the fuel subsidy removal, but some of their colleagues later prevailed over them. And when he was finally allowed into the premises to make his address, Kachikwu told members of the House of Representatives that they were left with no option than to increase the price of fuel.

Here are five major things he said during the meeting:

1. The diminished foreign exchange supply situation in Nigeria, which forced marketers to stop importation and imposed over 90 per cent supply on the Nigerian National Petroleum Corporation (NNPC) since October 2015 is responsible for the subsidy removal.

2. Significant decline in government’s foreign exchange revenues and renewed sabotage and pipeline vandalism in the Niger Delta.

3. There was no provision for subsidy in the 2016 Appropriation Act and as at Monday, the fuel price of 86.50 gave an estimate subsidy claim of 13.7 Naira per litre, which translates to 16.4 billion Naira monthly.

 4. The new price band had gone into effect and the market had stabilised in terms of product availability.

5. NNPC will no longer resort to federation barrels and would endeavour to meet its obligation to pay FAAC 100 percent of its entitlement from the 445,000 barrels per day in the coming months.