The Nigerian National Petroleum Company Limited has stated that it has not paid fuel subsidies to anyone in the past nine years, amidst growing controversy. The Chief Financial Officer, Alhaji Umar Ajiya, made this clarification in Abuja on Monday.
Despite reports of ongoing fuel subsidy payments in Nigeria following President Bola Ahmed Tinubu’s announcement of its removal in May 2023, Ajiya clarified that the NNPC was only addressing shortfalls in Premium Motor Spirit (PMS) importation between the company and the federation.
“In the last eight to nine years, the NNPCL has not paid anybody a dime as subsidy, no one has been paid kobo by the 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 certain 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 what we call shortfall.
“And the deal is between the Federation and NNPCL to reconcile, sometimes they give us money, so there is no money exchanging hands with any marketer in the name of subsidy,” he said.
This comes weeks after the Minister of Budget and National Planning, Abubakar Bagudu explained that NNPCL is using fuel subsidy savings to sustain the product’s current pump price.
Recall that the firm was reported to demand an N2.6 trillion foreign exchange differential claim from the Nigerian Government for fuel importation between August 2023 to June 2024.
