Amid growing controversy, the Nigerian National Petroleum Company Limited (NNPCL) has clarified that it has not made any fuel subsidy payments in the last nine years.
This statement was made by the company’s Chief Financial Officer, Alhaji Umar Ajiya, on Monday in Abuja.
Ajiya’s clarification follows reports suggesting that Nigeria continues to pay fuel subsidies despite the announcement by President Bola Ahmed Tinubu’s administration in May 2023 that subsidies had been removed.
According to Ajiya, the NNPCL has not paid any marketer or entity in the name of subsidy during this period. He explained that the company has been handling shortfalls related to Premium Motor Spirit (PMS) importation costs, which are reconciled directly between the NNPCL 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,” Ajiya stated. “No marketer has received any money from us by way of subsidy. The difference between the landing price and the government-mandated selling price is what we refer to as a shortfall. The reconciliation of these shortfalls is between the Federation and NNPCL, with no money exchanging hands with any marketer in the name of subsidy.”
This statement comes weeks after the Minister of Budget and National Planning, Abubakar Bagudu, explained that NNPCL is utilising fuel subsidy savings to maintain the current pump price of fuel.
Additionally, reports have surfaced that NNPCL has requested an N2.6 trillion foreign exchange differential claim from the Nigerian government for fuel importation covering the period from August 2023 to June 2024.
