NNPC Ltd. Denies Petrol Subsidy Payments

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has categorically denied recent reports that it continues to pay subsidies on petrol.

The company’s Chief Financial Officer, Umar Ajiya, made this clarification during a press briefing in Abuja on Monday, August 19, asserting that no payments have been made under the guise of subsidies for the past eight to nine months. 

However, his statements have raised concerns about transparency and the ability of NNPC Ltd. to effectively manage the nation’s economic challenges.

Ajiya explained that while NNPC Ltd. has been importing Premium Motor Spirit (PMS) at a specific cost price, the government has mandated the company to sell it at a significantly lower price, creating a shortfall. 

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He emphasized that the arrangement involves reconciliation between the Federation and NNPC Ltd., where funds may be provided to offset these losses, but no money has been exchanged with marketers as a subsidy. 

This clarification follows a report by The Cable suggesting that President Bola Tinubu had approved the use of the 2023 final dividends owed to the federation to cover the cost of gasoline subsidies, further complicating public understanding of the situation.

Furthermore, these explanations and doubts persist about the sincerity of NNPC Ltd.’s operations and its handling of the nation’s economic issues. 

The company’s inability to provide clear and consistent information has led to widespread skepticism, with many questioning the transparency of its financial dealings and the effectiveness of its management. 

The ongoing confusion surrounding the subsidy payments highlights a significant gap in public trust, suggesting that NNPC Ltd. must take more decisive steps to improve accountability and restore confidence.