14 April 2016, Abuja – The Nigerian National Petroleum Corporation (NNPC) used to spend $1.8 billion on fuel importation quarterly, its Group Executive Director (Upstream) Rabi’u Bello has disclosed.
Bello, while briefing State House correspondents, yesterday, on the current nationwide fuel scarcity, put the monthly expenses on fuel importation at $600 million.
Also at the press conference were the NNPC Group General Manager (Public Affairs) Garbadeen Mohammed, GED/COO (Downstream) Henry Obih and GED/COO (Refineries) Anibor Kragha.
Bello said: “Spending on imports relies on two things: the volume and the price. As we speak today, a cargo of product of about 40 million litres will cost about $13 to $14 million. And we need about 45 to 50 million litres to satisfy the country, depending on the time and the condition of the country.
“So, if you assume that will cost about $16 million per day, it can also go up to $20 million, depending on the price. It means you need $20 million multiplied by 90 days for a quarter; that is $1.8 billion. So, this amount is required to import the country’s fuel requirement for one quarter. Every month, we need $600 million to import fuel. So, we need $1.8 billion to import the country’s requirement for one quarter.”
- Daily Trust