NNPC confirms payment but says it’s not for fuel subsidy
NNPC Ltd. confirms it has not paid any fuel subsidies in the last nine months, managing PMS import shortfalls directly with the Nigerian Federation while maintaining strong credit relationships with suppliers.
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has clarified that it has not disbursed any funds for fuel subsidies over the past nine months. Speaking in Abuja, the company's Chief Financial Officer, Alhaji Umar Ajiya, emphasized that no marketer has received subsidy payments from NNPC Ltd. during this period. Instead, the company has been managing the cost discrepancies arising from the importation of Premium Motor Spirit (PMS) and the government-mandated lower sale prices.
Ajiya explained that the difference between the actual landing cost of PMS and the reduced sale price is classified as a shortfall, which is reconciled directly between NNPC Ltd. and the Nigerian Federation. He underscored that no direct payments have been made to marketers under the guise of subsidies. The company operates on credit lines common in global commercial practices, maintaining term-line contracts with PMS suppliers.
Dapi Segun, NNPC Ltd.’s Executive Vice President of Downstream, further highlighted the company’s strong reputation and credibility with its suppliers. He dismissed claims of an outstanding debt as high as $6.8 billion, noting that the figure is dynamic and fluctuates with ongoing payments and supply deliveries. The key priority, Segun emphasized, is ensuring the consistent availability of PMS across Nigeria, with NNPC Ltd. committed to maintaining its relationships and fulfilling its financial obligations to suppliers.
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