The recent statement by the Nigeria National Petroleum Company Ltd (NNPCL) Chief Financial Officer, Mr. Umar Ajiya that no oil marketers have been paid any subsidy in the last nine years has left so many questions, controversies and contradictions.
Giving a breakdown of the national oil company’s 2023 Audited Financial Statement in Abuja, on Monday, August 19, 2024 Ajiya stirred the hornets nest when he thundered that the company was only taking care of petrol importation shortfalls between it and the federation. In other words, they had no business with the oil marketers, asides selling fuel to them.
He unequivocally stated that NNPCL had not paid any subsidy to any company in the past nine years.
“No marketer has received any money from us in the name of subsidy payment in the last eight or nine years, not a dime.”
Yet, in an obvious and glaring contradiction, the Group Chief Executive Officer GCEO of the same company, Mele Kolo Kyari on National Television confirmed that the state company has been paying the subsidy shortfall from its cash flow.
“Today, we are waiting for them (FG) to settle up to N2.8 trillion of NNPC’s cash flow from the subsidy regime and we can’t continue like this.
“They (the federal government) are unable to pay and we have continued to support this subsidy from the cash flow of the NNPC. That is, when we net off our fiscal obligations of taxes and royalties, there is still a balance that we are funding from our cash flow. And that has become very difficult and it is affecting our other operations.
“We are not able to keep some of the cash to invest in our core businesses. And the end result is that it can be a huge challenge for the company and we have highlighted this severally to the government that they must compensate and pay back NNPC for the money that we have spent on the subsidy” he disclosed on May 30, 2023 shortly after a meeting with President Tinubu. This begs the question of who did NNPCL pay to?
More importantly, Ajiya claimed that there was no subsidy payment but only a “recovery of shortfall” from the actual value.
Even the company’s GCEO at several fora had claimed that there is no subsidy payment, yet, as early as July 10, 2024, the company categorically stated that it is paying subsidy but has not inflated the claims when it was forced to react to reports that the subsidy claims were inflated.
READ ALSO:NNPC claims no subsidy paid on petrol, covers N7.8tn ‘shortfall’
Hear the company that claims not to be paying subsidy “The Nigerian National Petroleum Company Limited (NNPC Ltd) notes with dismay a report in a section of the media alleging that it inflated subsidy claims by N3.3trillion, and wishes to state that:
“NNPC Ltd conducts its businesses accountably and transparently in keeping with international best practices and has, at no time, inflated its subsidy claims with the Federal Government.
“All previous subsidy claims (repeated again) by the Company are verifiable as relevant records and documents have been sent to relevant authorities and agencies.
“NNPC Ltd is neither aware of any audit of its subsidy claims nor probe ensuing therefrom and wishes to state categorically that both ridiculous claims are products of the febrile imagination of the reporters and their respective media houses.
“NNPC Ltd will resist any attempt to drag the Company into the apparent politics of fuel subsidy as it currently operates on commercial basis and on the express provisions of the Petroleum Industry Act (PIA).
“It is on record that in line with its Transparency, Accountability & Performance Excellence (TAPE) mantra, NNPC Ltd. has, on several occasions, independently invited external auditors to review its books” the company stated.
Over the years, Nigerians have been led to believe the existence of the monster called fuel subsidy as on several occasions, oil Marketers in Nigeria had raised the roofs with claims of millions of naira being owed them as subsidy payments, yet the NNPCL has claimed that there is no subsidy.
The opacity surrounding the fuel subsidy regime has forced former Nigerian Vice President, Atiku Abubakar to seek clarification of the process.
In a post on his official X platform on Monday, Atiku said reports regarding the government’s continuation of the subsidy on petrol shows the “unclear” governance under President Bola Tinubu’s administration.
The former vice-president said only transparent governance can provide Nigerians with relief from “the debilitating conditions of fuel scarcity and the escalating inflation affecting petroleum products”.
He lamented the persistent denials by NNPC Limited as only exacerbating the plight of Nigerians, who endure severe difficulties due to fuel shortages and resultant price inflation.
By: Babajide Okeowo
The post REVIEW: Who is lying to Nigerians? Contradictions, questions trail NNPCL N7.8tr ‘subsidy’ debt claim appeared first on Latest Nigeria News | Top Stories from Naomisophyblog.
