The Group Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari, said the Federal Government removed subsidy on petrol because of fraud.
Kyari said some cabals which he failed to identify perpetrated the fraud in the oil industry.
The NNPC boss also said over N10tn was spent on fuel subsidy between 2006 and 2020 without significant impact on the Nigerian masses.
He said the beneficiaries of the fuel subsidy regime were the marketers who smuggled the subsidised product to neighbouring countries.
These marketers, he explained, made more profits with fake documents to collect subsidy for fuel they never imported.
The NNPC GMD spoke in an Hausa programme on Liberty FM, Kaduna, monitored on Saturday.
He said fuel subsidy was the root of all the atrocities and frauds in the oil sector.
According to him, the government removed the subsidy with a plan to reinvest on projects that will have direct impact on the masses.
He said, “The crude oil is a global commodity and its price is not hidden. Everyone can calculate and know how much the cost of every final product from the crude at international market is.
“Since the inception of the country, the government has been paying subsidy on petrol to make it cheaper for Nigerians to buy below the cost price.
“This subsidy is designed to assist the masses of Nigeria; that is the intention, but in reality, the masses are not the beneficiaries. First, the masses are not the owners of the exotic cars buying fuel, owning the filling stations and doing the oil business.