The Nigerian National Petroleum Company Limited (NNPC Ltd.) has confirmed that while it has made certain payments recently, these are not connected to fuel subsidies. The company made this clarification amidst growing concerns and speculation about its financial activities in relation to fuel importation.
Speaking in Abuja on Monday, NNPC Ltd.’s Chief Financial Officer, Alhaji Umar Ajiya, provided a detailed breakdown of the company’s recent expenditures. According to Ajiya, the NNPC has not disbursed any funds to marketers or other entities under the guise of fuel subsidies for the past nine months.
“In the last eight to nine months, NNPC Ltd. has not paid anybody a dime as a subsidy; no one has been paid Kobo by NNPC Ltd. in the name of subsidy.
“No marketer has received any money from us by way of subsidy.
“What has been happening is that we have been importing PMS, which has been landing at a specific cost price, and the government tells us to sell it at half price. “So the difference between the landing price and that half price is a shortfall.
“And the deal is between the Federation and NNPC Ltd., to reconcile, sometimes they give us money, so there is no money exchanging hands with any marketer in the name of subsidy,” he said.
