Connect with us

    Hi, what are you looking for?

    News

    NNPC denies paying Fuel subsidy

    NNPC

    Nigerian National Petroleum Company Limited (NNPC Ltd.) has denied reports claiming it still pays subsidies for petrol.

    The company’s Chief Financial Officer, Umar Ajiya, made the clarifications in Abuja, on Monday, August 19.

    Ajiya said NNPC Ltd. was only handling Premium Motor Spirit (PMS) importation shortfalls between the company and the federation.

    “In the last eight to nine months, NNPC Ltd. has not paid anybody a dime as a subsidy; no one has been paid Kobo by NNPC Ltd. 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 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.

    “And the deal is between the Federation and NNPC Ltd., to reconcile, sometimes they give us money, so there is no money exchanging hands with any marketer in the name of subsidy,” he said

    He stated that credit lines are prevalent in downstream businesses based on the worldwide commercial system. He added that the company was in an open credit agreement with PMS suppliers in the past, with term-line contracts for payment.

    His clarification came after The Cable reported that President Bola Tinubu had approved the Nigerian National Petroleum Company (NNPC) Limited to use the 2023 final dividends owed to the federation to cover the cost of petrol subsidies. Read here.

     

    Spread the love
    Click to comment

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    ad

    You May Also Like

    Tech

    Nigerian Communications Commission (NCC) has welcomed the appointment of Mr. Idris Olorunnimbe as Chairman-designate of its Board, alongside other newly appointed members of the...

    Tech

    By Kehinde Ogundare, Country Head, Zoho Nigeria Business growth should feel energising — not like a daily struggle. When operations begin to scale, the...

    Sports

    National Basketball Association aka NBA has approved the sale of the Boston Celtics to an investment group led by American billionaire businessman, Bill Chisholm,...

    Tech

    Active internet subscriptions across mobile, fixed, and VOIP networks in Nigeria dropped to 141.1 million in June, representing a 0.3% decline from the 141.5...