The Nigerian National Petroleum Company Limited (NNPC LTD), has clarified that no oil marketer has been paid a kobo as subsidy in the last 8 to 9 years.
Mr. Umar Ajiya, the Chief Financial Officer of the National Oil Company made the clarification in a World Press Conference on Monday in Abuja.
TheCable in an Exclusive report yesterday claimed that the NNPC would utilise the 2023 final dividends due to the federation to pay for petrol subsidy.
It said that the NNPC Forecast showed that the cumulative petrol subsidy bill from August 2023 would hit N6.884 trillion by December 2024- leaving the national oil company unable to remit N3.987 trillion in taxes and royalties to the federation account.
It, however, said, it could not confirm the total amount of dividends to be withheld or suspended, but that the company is expected to pause the payment of interim dividends for eight months this year-from May to December.
Expressing sadness over the report, the former Vice President of the Federal Republic of Nigeria, Alhaji Atiku Abubakar said, “the development starkly contrasts with the President’s firm assertions in a national broadcast, which followed closely on the heels of public protests decrying poor governance, where he declared the subsidy regime concluded.
“However, disclosures prior to his announcement have consistently indicated a resurgence of subsidy payments, albeit through less transparent means”, he said.
The Presidential Candidate of the Peoples Democratic Party (PDP) in the 2023 general election submitted that the dissonance between the President’s words and his actions not only undermines the moral fabric of his leadership but also significantly erodes the credibility of his administration.
He said, “The veil of secrecy shrouding the downstream petroleum sector, coupled with alarming reports of NNPC Limited diverting funds intended for other purposes to cover subsidy payments, adds layers of confusion that are unbearably unsettling.
“If these reports hold true, they portend grave implications for the integrity of our fiscal federalism. It is imperative, therefore, that the Tinubu administration urgently clarifies the entanglements surrounding the subsidy policy and the refining of PMS”, he said.
In a swift reaction, the NNPC Chief Financial Officer said, “I think there is one fact that I need to make very clear. In the last 8 or 9 years, this company, or Corporation as it were, has not paid any marketer a dim or one naira, as subsidy. No one has been paid kobo by NNPC in the name of subsidy.
“No marketer has received money from us by way of subsidy. What has been happening is that we have been importing PMS, landing at a certain price and at a cost price, and the government is telling us to sell it at a half price.
“So that landing cost and the half price is what is called shortfall or subsidy. And the deal is between the federation and ourselves to reconcile. So, there is no money exchanging hands to any marketer or anybody in the name of subsidy”, he said.
