The Nigerian Nationwide Petroleum Firm Restricted has confirmed that the Federal Authorities is paying subsidies on the petrol it imports into the nation.
Although the NNPCL denied paying gasoline subsidies to entrepreneurs within the final 9 months, it stated the federal government permits it to promote at a value beneath the touchdown value
The corporate’s Chief Monetary Officer, Alhaji Umar Ajiya, made the clarifications on Monday in Abuja.
Ajiya stated the corporate was solely dealing with petrol importation shortfalls between it and the federation.
“Within the final eight to 9 months, NNPCL has not paid anyone a dime as a subsidy; nobody has been paid kobo by NNPCL within the identify of subsidy. No marketer has obtained any cash from us by the use of subsidy.
“What has been taking place is that we’ve got been importing PMS, which has been touchdown at a particular value value, and the federal government tells us to promote it at half value. So the distinction between the touchdown value and that half value is a shortfall.
“And the deal is between the Federation and NNPCL to reconcile. Generally, they provide us cash, so there isn’t any cash exchanging fingers with any marketer within the identify of subsidy,” he stated.
He acknowledged that credit score strains are prevalent in downstream companies primarily based on the worldwide business system.
He added that the corporate was in an open credit score settlement with PMS suppliers prior to now, with term-line contracts for fee.
Additionally, the Govt Vice President of downstream at NNPCL, Dapo Segun, stated that establishing an open credit score settlement with suppliers spoke volumes in regards to the credibility the nationwide oil firm had constructed over time.
“Regarding the excellent to the suppliers, it isn’t in that magnitude that has been put out, it’s decrease than the $6.8bn
“What actually issues is the connection between us and our suppliers to make sure that we maintain religion in making these funds to our suppliers, which we’ve got performed over time.
“You’ll perceive that it isn’t a static determine, and I wouldn’t wish to quote any determine. Once we make funds, it goes down, and after they provide merchandise, it goes up. It’s a dynamic approach, however crucial factor is to make sure that we proceed to make PMS accessible throughout the nation,” he stated.
The Federal Authorities has repeatedly denied paying subsidies on petrol even when main entrepreneurs put the touchdown value above N1,000 per litre.
Being the one importer of petrol, the Federal Authorities pays the NNPCL to promote gasoline to Nigerians at a subsidised fee.
Nonetheless, this has led to incessant gasoline shortage throughout the nation as specialists search an finish to gasoline importation.