The Nigerian National Petroleum Company Limited (NNPCL) says it has not paid fuel subsidy to anyone in the last nine years.
The NNPCL Chief Financial Officer, Umar Ajiya, made this known in Abuja on Monday, August 19, 2024.
Ajiya said the NNPCL was only taking care of Premium Motor Spirit (PMS), fondly called petrol, importation shortfalls between the company and the federation.
He stated: “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 NNPCL in the name of subsidy.
“No marketer has received any money from us by way of subsidy.
“What has been happening is that we have been importing PMS, which has been landing at a certain cost price and government tells us to sell it at half price.
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“So the difference between the landing price and that half price is what we call shortfall.
“And 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.”
Ajiya said credit lines are prevalent in the downstream business based on the worldwide commercial system, adding that the company was in an open credit agreement with petrol suppliers in the past, with term lines agreement for payment.
Also speaking, the NNPCL Executive Vice President, Downstream, Dapi Segun, said establishing an open credit agreement with suppliers spoke volumes of the credibility which, he stated, the national oil company built over a period of time.
Segun said: “Concerning the outstanding to the suppliers, it is not in that magnitude that has been put out, it is actually lower than the N6.8 billion.
“What matters really is the relationship between us and our suppliers to ensure that we keep faith in making these payments to our suppliers which we have done overtime.
“You would understand that it is not a static figure and I wouldn’t want to be quoting any figure, when we make payments it goes down, when they supply products it goes up.
“It is a dynamic way, but the most important thing is to ensure that we continue to make PMS available across the country.”
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