The Nigerian National Petroleum Company Limited (NNPC Ltd.) has confirmed that it has received payments from the Federal Government to sell petrol at half the landing cost. However, the company clarified that it has not paid any fuel subsidies in the last nine months.
NNPC’s Chief Financial Officer, Alhaji Umar Ajiya made the statement on Monday in Abuja. He explained that the payments were to cover the shortfall between the landing cost of Premium Motor Spirit (PMS) and the reduced selling price mandated by the government.
Ajiya emphasized that no marketers had received any subsidy payments from NNPC during this period.
He further explained that the arrangement was between NNPC Ltd. and the Federation, with no money being exchanged with marketers as subsidies. He also noted that the company has been operating on credit agreements with PMS suppliers, maintaining a dynamic payment system to ensure continuous fuel availability across the country.
This clarification follows reports that President Bola Ahmed Tinubu approved the use of the 2023 final dividends due to the federation by NNPC Ltd. to cover petrol subsidy payments.
