NNPC Ltd Clarifies: No Fuel Subsidy Payments in Nine Years
In a recent statement, the Nigerian National Petroleum Company Limited (NNPC Ltd.) has addressed the ongoing controversy surrounding fuel subsidy payments. On Monday, August 19, the company’s Chief Financial Officer, Umar Ajiya, made a surprising revelation.
According to Ajiya, NNPC Ltd. has not paid fuel subsidies to any entity for the past nine years. He emphasized, “In the last eight to nine years, NNPC Ltd. has not paid anybody a dime as subsidy. No one has been paid a kobo by NNPC Ltd. in the name of subsidy. No marketer has received any money from us by way of subsidy.”
Instead, Ajiya explained that NNPC Ltd. has been managing the importation of Premium Motor Spirit (PMS), commonly known as petrol. The company has been dealing with the price difference between the landing cost and the government-mandated selling price.
“NNPC Ltd. has only been importing PMS, which has been landing at a certain cost price, and the government mandates us to sell it at half price,” Ajiya clarified. He referred to this price difference as a “shortfall.”
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Ajiya further elaborated on the process: “The deal is between the Federation and NNPC Ltd. to reconcile. Sometimes they give us money, but there is no money exchanging hands with any marketer in the name of subsidy.”
This statement from NNPC Ltd. sheds new light on the fuel subsidy debate in Nigeria, potentially changing the public’s understanding of how the system has been operating over the past nine years.
As the discussion around fuel subsidies continues to be a hot topic in Nigeria, this clarification from NNPC Ltd. is likely to spark further debate and scrutiny of the country’s fuel pricing mechanisms.
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