NNPCL Denies Paying Fuel Subsidy
Written by Ayomide Ishola on August 20, 2024
Alhaji Umar Ajiya, the Nigerian National Petroleum Company Limited’s (NNPCL) financial officer, revealed that no one had received fuel subsidies in the previous nine months. Ajiya stated that the NNPCL is handling the Premium Motor Spirit (PMS) importation gaps between the corporation and the federation during a news conference in Abuja. “NNPC Ltd. has not given anybody any money as a subsidy or given anyone kobo in the name of a subsidy in the last eight to nine months.”
“We have never given any money as a subsidy to any marketer.”We have been importing PMS, which has been arriving at a specific cost price. The government has instructed us to sell it for half of that amount.”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. “So the difference between the landing price and that half price is what we call shortfall.”
He stated that credit lines are typical in the global commercial system’s downstream business. Additionally, he mentioned that the business previously had a term lines agreement for payment and an open credit relationship with PMS providers. NNPC Ltd.’s Executive Vice President of Downstream, Dapi Segun, underlined that the national oil company’s ability to negotiate an open credit agreement with suppliers was a testament to its growing credibility. Regarding the amount still owed to the vendors, it is substantially less than the N6.8 billion and is not of the proportion that has been disclosed.
According to him, credit lines are common in the downstream business of the global commercial system. He also claimed that the company had an open credit relationship with PMS providers and a term lines arrangement for payment. Dapi Segun, Executive Vice President of Downstream at NNPC Ltd., emphasised that the national oil company’s increasing trust was demonstrated by its ability to negotiate an open credit deal with suppliers. The remaining money payable to the suppliers is not of the proportion that has been reported and is far less than the N6.8 billion.
