Ajiya clarified that NNPC Ltd. has not been paying subsidies for Premium Motor Spirit (PMS) importation.
He explained that in the past 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.”
According to Ajiya: “No marketer has received any money from us by way of subsidy. What has been happening is that we have been importing PMS, which has been landing at a specific cost price, and the government tells us to sell it at half price. So the difference between the landing price and that half price is a shortfall. And the deal is between the Federation and NNPC Ltd., to reconcile, sometimes they give us money, so there is no money exchanging hands with any marketer in the name of subsidy.”
Ajiya also noted that credit lines are standard in downstream businesses globally. He mentioned that NNPC Ltd. previously operated under open credit agreements with PMS suppliers, including term-line contracts for payments.
This clarification follows a report by The Cable, which stated that President Bola Tinubu had authorized NNPC Ltd. to use the 2023 final dividends owed to the federation to cover petrol subsidy costs.
