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We’re Selling Petrol At Half The Landing Cost, Which Is Not Subsidy – NNPC

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The Nigerian National Petroleum Company (NNPC) Ltd has addressed concerns regarding the pricing of petrol, stating that it is currently selling Premium Motor Spirit (PMS) at only half of its actual landing cost.

Umar Ajiya, NNPC’s Chief Financial Officer (CFO), clarified on Monday in an interview with the News Agency of Nigeria (NAN) that the company has been covering what he termed a “shortfall” rather than providing a subsidy.

According to Ajiya, while the official pump price remains at approximately N600 per litre, the landing cost is around N1,200 per litre.

Related News: Tinubu Approves NNPC’s Plan To Spend Federation Dividends On Petrol Subsidy

Ajiya further disclosed that it cost the NNPC a staggering N7.8 trillion to cover this price gap in the first seven months of 2024.

This revelation has reignited discussions on whether the NNPC is indirectly offering subsidies, a concept typically defined as selling a product below its cost price.

Documents reviewed showed that the term “subsidy” was used extensively in official correspondence between the NNPC and the presidency, particularly in reference to the “shortfall.”

Recall that President Bola Tinubu reportedly approved NNPC’s request to utilize the 2023 final dividends due to the federation to offset these costs.

However, during a media briefing on Monday about the company’s 2023 audited financial statements, Ajiya refuted claims that the NNPC is involved in any subsidy scheme.

He stated that the company is merely managing the price difference in petrol imports on behalf of the federation, stressing that this should not be misconstrued as a return to subsidy payments.

Ajiya further disclosed that the Nigerian government owes the NNPC N7.8 trillion ($4.9 billion) in subsidy-related debts for the period from January to July 2024.

However, in his clarification to the News Agency of Nigeria (NAN), Ajiya insisted that no subsidy payments have been made to any marketer in the last nine years, citing the NNPC’s role as the sole importer of petrol under supply contracts.

He said, “In the last eight to nine years, NNPC Ltd. has not paid anyone a dime as a subsidy; no kobo has been disbursed by NNPC Ltd. in the name of subsidy. No marketer has received any payment from us for 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 remained silent on how much of the $4.9 billion could have been remitted to the federation account if the NNPC had not been covering the “shortfall.”

Speculation suggests that the All Progressives Congress (APC) government is keen to avoid using the term “subsidy” due to its association with the so-called “subsidy scam” – a key issue the party used to oust the Peoples Democratic Party (PDP) from power in 2015.

 

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Backlash Hits Bauchi Lawmaker’s Wife For ‘Empowering’ Youths With Sugarcane

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Hajiya Fatima Aliyu Aminu Garu, the wife of Hon. Aliyu Aminu Garu, who represents Bauchi Federal Constituency, has come under fire for her recent empowerment initiative involving the distribution of sugarcane sticks to local youths.

The event, which was captured in photographs, has sparked ridicule and criticism from various quarters.

The Bauchi State Chapter of the Peoples Redemption Party (PRP) has publicly condemned the initiative.

Read Also: Bauchi Emirate Strips Senator Of Title For Alleged Disrespect To Governor

In a statement, Abdulazeez Haruna, the PRP State Secretary, criticized the gesture as falling “far short of the expected standards of representation for the people of Bauchi Federal Constituency.

“As a party, we believe that genuine representation goes beyond mere tokenism and selective empowerment programs. The people of Bauchi Local Government Area/Federal Constituency deserve more than just meagre handouts and superficial gestures. They deserve meaningful developmental initiatives that address their pressing needs and concerns.”

“We are calling on Hon. Aliyu Garu to account for his actions and inactions in the National Assembly. Specifically, we demand to know what tangible developmental initiatives he has brought to the people of Bauchi Local Government Area since his election. How many bills has he sponsored that have positively impacted the lives of the people? What concrete projects has he initiated or supported to improve the welfare and livelihoods of the constituents?

“We urge Hon. Aliyu Garu to demonstrate his commitment to serving the people by working towards tangible benefits that transcend mere tokenism and handouts. We also call on the people of Bauchi Local Government Area/Federal Constituency to hold their representative accountable for his actions or lack thereof. It is time for a change in representation that truly reflects the aspirations and needs of our constituents.

“While we stand ready to provide a more effective and people-centered representation to the good people of Bauchi Local Government Area in particular and Bauchi State at large, we equally demand better representation from Hon. Aliyu Garu and all other public office holders who have been entrusted with the responsibility of serving the people.”

 

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Gov Alia Appoints Benue’s First Female SSG

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Benue State Governor, Hyacinth Alia, has reaffirmed his administration’s confidence in the leadership abilities of women, as he appointed Barrister Aber Deborah as the first female Secretary to the State Government (SSG).

Speaking at the swearing-in ceremony held at the Old Banquet Hall of the Benue State Government House in Makurdi on Thursday, Governor Alia emphasized that the appointment underscores his commitment to promoting gender inclusion and merit-based leadership.

Read Also: FG Implements Cape Town Convention To Cut Airline Costs

He noted the significant contributions of women to society, stating that Aber’s historic appointment reflects the government’s dedication to advancing diversity in governance.

He said, “As the first woman ever to be appointed as Secretary to the State Government in Benue State, Barr. Aber Serumun Deborah’s appointment is a testament to the confidence I, and indeed this administration, have in the abilities of the women of Benue.

“We recognize the important roles women play in our society, and this appointment reflects our determination to elevate merit and diversity in leadership.”

Governor Hyacinth Alia expressed his strong confidence in the newly appointed Secretary to the State Government (SSG), Barrister Aber Deborah, stating that she will play a key role in coordinating government activities, promoting collaboration among ministries, and driving policies for the sustainable development of Benue State.

He assured her of the administration’s full support as she takes on her responsibilities.

Governor Alia also called on public servants, stakeholders, and the people of Benue to rally behind the new SSG and his administration, emphasizing that the task of building the state requires collective effort.

He urged everyone to work together in advancing the state’s progress and development.

In her response, Barrister Deborah expressed gratitude to God and Governor Alia for the opportunity to serve as Benue State’s first female SSG.

She pledged to lead her office with diligence and dedication, aligning her efforts with the administration’s blueprint.

Deborah also expressed her commitment to laying the groundwork for a better and more prosperous Benue State.

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King Charles Welcomes Tinubu At Buckingham Palace

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King Charles III welcomed President Bola Tinubu to Buckingham Palace in the United Kingdom.

Olusegun Dada, the president’s new media aide, shared a photo of their meeting on X on Thursday.

The aide noted that their discussion focused on the ongoing diplomatic relationship and collaboration between Nigeria and the UK.

Read Also: CBN Issues 30-Day Compliance Deadline For PSPs On POS Transaction Routing

Dada wrote, “President Bola Ahmed Tinubu visited His Majesty, King Charles at Buckingham Palace. The significant meeting, highlighting the continued diplomatic ties and partnership between Nigeria and the United Kingdom.”

The meeting, which emphasized the enduring partnership between the two nations, follows their previous encounter in November 2023, just before the 28th United Nations Climate Change Conference (COP28) in Dubai, UAE.

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