The Nigerian National Petroleum Company Limited (NNPC Ltd.) announced on Monday, August 19, that it has not paid any fuel subsidies to any entity in the past nine years.
Umar Ajiya, the Chief Financial Officer of NNPC Limited, stated that the company has only been covering the shortfalls in Premium Motor Spirit (PMS) importation between NNPC and the federation.
“In the last eight to nine years the NNPC Ltd., 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,” Ajiya said.
He explained that NNPC Ltd. has been importing PMS at a specific landing cost, but the government requires the company to sell it at half that price.
He further added, “The difference between the landing cost and the reduced selling price is what we refer to as a shortfall.
“This arrangement is strictly between the Federation and NNPC Ltd., and sometimes the Federation provides funds to cover these shortfalls. No money has been exchanged with any marketer under the guise of subsidy,” he said.
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