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The Nigerian National Petroleum Company Limited (NNPCL) has confirmed that the Federal Government is indeed paying subsidies on imported petrol, despite earlier denials.
In a surprising revelation, NNPCL’s Chief Financial Officer, Alhaji Umar Ajiya, disclosed on Monday that the government allows the company to sell petrol at a price below the landing cost, resulting in a shortfall that is later reconciled with the Federation.
Ajiya emphasized that NNPCL has not paid fuel subsidies to marketers in the last nine months, but instead, has been handling importation shortfalls with the government.
He explained that the government instructs NNPCL to sell petrol at a price lower than the landing cost, creating a shortfall that is later addressed through reconciliation with the Federation.
“In the last eight to nine months, NNPCL has not paid anybody a dime as a subsidy; no one has been paid kobo by NNPCL in the name of subsidy. No marketer has received any money from us by way of subsidy.
āWhat 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.
āAnd 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,ā he said.
This clarification comes amid controversy surrounding fuel subsidy payments, with NNPCL’s statement shedding light on the complex dynamics involved in petrol importation and pricing in Nigeria.
Tags: NNPCL, Nigeria, Mele Kyari, Bola Tinubu, Oil Sector, PMS, Subsidy, Fuel, CBN
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