The Nigerian National Petroleum Company Limited (NNPC Ltd.) has clarified that it has not paid any fuel subsidy to marketers or any other entities in the last nine years. This was disclosed by the company's Chief Financial Officer, Alhaji Umar Ajiya, during a briefing in Abuja on Monday.
Ajiya explained that NNPC Ltd. has been managing the shortfall between the landing cost of Premium Motor Spirit (PMS) and the government-mandated retail price, which is often sold at a significantly reduced rate. However, no direct payments have been made to marketers under the guise of a subsidy.
"In the last eight to nine years, NNPC Ltd. has not paid anybody a dime as subsidy, no one has been paid kobo by the NNPC Ltd. in the name of subsidy," Ajiya stated. He further elaborated that the financial transactions have been exclusively between the federation and NNPC Ltd., ensuring that any price shortfalls are reconciled internally, without any funds changing hands with marketers.
Additionally, Dapo Segun, the Executive Vice President of Downstream at NNPC Ltd., addressed concerns regarding the company's credit arrangements with PMS suppliers. He emphasized that the outstanding balance owed to suppliers is not as high as the speculated N6.8 billion, and the company has consistently maintained good relationships with its suppliers, ensuring the continuous supply of PMS across Nigeria.
Segun highlighted that the outstanding balance fluctuates based on ongoing transactions, but reassured that NNPC Ltd. remains committed to fulfilling its payment obligations and ensuring the availability of PMS nationwide.
This clarification from NNPC Ltd. aims to address public concerns and provide transparency regarding the company’s role in managing fuel costs and maintaining supply across the country.
