The Nigerian National Petroleum Company Limited (NNPC Ltd.) has denied recent reports alleging that it continues to pay subsidies for petrol. Umar Ajiya, the company’s Chief Financial Officer, addressed the claims in Abuja on Monday, August 19, emphasizing that no subsidies have been paid for the past eight to nine months.

Ajiya clarified that NNPC Ltd. has not disbursed any funds to marketers under the guise of subsidy payments. He explained that the company has been managing the shortfall between the landing cost of Premium Motor Spirit (PMS) and the government-mandated sale price, but this does not constitute a subsidy.

“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,” Ajiya stated. He further explained that the difference between the actual cost of PMS and the government-imposed selling price is reconciled between NNPC Ltd. and the Federation, with no direct payments made to marketers.

Ajiya also highlighted the use of credit lines in the downstream business sector, noting that NNPC Ltd. had previously entered into open credit agreements with PMS suppliers based on term-line contracts.

His statements were made in response to reports, including one by The Cable, which suggested that President Bola Tinubu had authorized NNPC Ltd. to use the 2023 final dividends owed to the federation to offset the cost of petrol subsidies.