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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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2026 Poll: Osun Ndigbo Backs Adeleke’s Second-Term Bid

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Ahead of the 2026 governorship election, the Ndigbo community across the local government areas of Osun State has declared its support for the second-term bid of Governor Ademola Adeleke.

A government house statement in Osogbo on Wednesday night has it that ndi Igbo cited his administration’s developmental strides across the state for their decision.

The endorsement was made during a courtesy visit by leaders of the Igbo community in Osun to the governor at the Government House in Osogbo, where they commended his leadership and commitment to inclusive governance.

ALSO READ: Adeleke on Why he Deserves Second Term

Speaking on behalf of the association, President-General of the Ndigbo in the state, Chief John Dike, praised the governor for the infrastructural and social development projects being carried out across the state.

He particularly commended the governor for appointing some members of the Igbo community as Senior Special Assistants, describing the gesture as a sign of recognition and inclusion of the community in the affairs of the state.

Chief Dike, however, appealed for further inclusiveness, requesting that more Igbo indigenes be considered for appointments into the state cabinet and other employment opportunities within the government.

He also urged the state government to allocate land for the construction of a modern secretariat for the Igbo community and grant approval for an endorsement rally in support of the governor’s re-election bid.

In addition, the Ndigbo leader sought assistance for Igbo farmers operating within the state, while assuring the governor of the community’s unwavering support for his administration and second-term ambition. Members of the delegation also presented campaign caps to the governor as a symbol of their solidarity.

Responding, Governor Adeleke expressed appreciation for the endorsement, noting that the Igbo community has continued to contribute positively to the social and economic development of the state.

He assured them that his administration would continue to promote their welfare and support their progress, while granting the requests presented during the visit.

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Adeleke on Why he Deserves Second Term

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Osun State Governor, Senator Ademola Jackson Nurudeen Adeleke, has declared that his administration’s record of performance and fulfilment of electoral promises justifies a second term in office.

A government house statement in Osogbo on Wednesday has it that the governor made the declaration while hosting a delegation of the Ansar-Ud-Deen Society of Nigeria (ADS), Osun State Council, during a courtesy visit to the Government House, Osogbo.

ALSO READ: CNG: Tinubu Orders Deployment of 100,000 Kits in Three Weeks

It was gathered that the delegation was led by the National Vice President of the society, Asiwaju Justice Adeigbe (Rtd), alongside the Chairman of the Osun State chapter, Chief Daud Oladapo.

Speaking on behalf of the delegation, the State Secretary of the society, Dr Afeez Akande, praised the Governor’s performance and pledged the support of the organisation for the continuity of the administration.

“We have been following what you are doing and your track records. You are wonderful and you are marvelous in our eyes. The monumental works you have been doing in Osun make it look like we have never had a Governor like this before,” Dr Akande said.

He noted that the administration’s projects are known for timely delivery and strategic impact on the lives of residents.

“We have identified that once you embark on projects, they are time-bound. It shows genuine administrative acumen, love for the state and love for the people,” he added.

Dr Akande also cited infrastructural developments, specifically the ongoing dualisation of roads, notably that of Iwo as an example of the Governor’s vision-driven leadership.

“That road project has helped to boost economic activities in the area. Such development can only come from someone with vision who follows through with implementation. We appreciate what you are doing and we are resolved to support the continuity,” he said.

Responding, Governor Adeleke thanked the delegation for the visit and reaffirmed his commitment to people-centred governance.

“Today marks the starting point of campaigning for the August 15, 2026 governorship election. We need your prayers and support for a free and fair election through which the will of the people will prevail,” the Governor said.

Governor Adeleke also unveiled an upgraded Five-Point Agenda that will drive his re-election campaign.

“Our reloaded Five-Point Agenda will focus on integrated youth, women and workers’ welfare and empowerment; infrastructure consolidation for citizens’ social and economic wellbeing; agro-industrial expansion for human development and collective prosperity; affordable and qualitative health and education access; and an improved and secured business environment for job creation,” the Governor stated.

Explaining why he deserves a second term, the Governor pointed to the administration’s record across several sectors.

“When the opposition asked whether I deserve to be re-elected, I told them yes based on my performance in this first term in office,” the Governor said.

“I deserve re-election because of what our administration has delivered for the people of Osun. We have empowered the cooperative movement with almost four billion naira, strengthened community development associations with grassroots health and infrastructure projects, and implemented the Imole Medical Outreach that has benefited almost eighty thousand residents.”

He added that the administration has also revived agriculture and rural development across the state.

“We revived the cocoa revolution through aggressive seedling distribution and new farmers’ initiatives, acquired brand new tractors now serving farmers across the state, and implemented thousands of local projects through integrated rural development under the O-RAMP programme,” he said.

Governor Adeleke further highlighted achievements in governance, infrastructure and economic management.

“We introduced a 45-day window for the acquisition of Certificates of Occupancy, revived the Osun Free Trade Zone with active investors, digitised tax and revenue collection, and implemented the SIFMIS payroll application to ensure transparency in the management of public funds,” he stated.

The Governor also cited major achievements in infrastructure and social services.

“We have constructed over 350 kilometres of roads, developed three major flyover bridges, revived six moribund waterworks, drilled 332 boreholes across wards, rehabilitated schools and health centres, and paid inherited half salaries and almost one hundred billion naira in pension debts,” he added.

Governor Adeleke assured the people of Osun that his administration will continue to deliver inclusive governance and sustainable development if re-elected.

“My promise to the people of Osun is that now and when we are re-elected, we will continue to run an inclusive and forward-looking government that keeps the people at the centre of our programmes and policies,” he said.

Other dignitaries, and political functionaries present included the Deputy Governor of Osun State, Prince Kola Adewusi, and the Head of Service, Elder Ayanleye Aina.

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Fuel Price Shock: Nigerians May Soon Pay ₦1,500 Per Litre – Marketers Warn

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Oil marketers have warned that Nigerians may soon pay as much as ₦1,500 per litre for Premium Motor Spirit (PMS), commonly known as petrol, as global oil prices surge following the escalating conflict involving Iran in the Middle East.

The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr. Billy Gillis-Harry, issued the warning on Tuesday while speaking on a television programme on the impact of the global crisis on fuel prices.

According to him, the current volatility in the international oil market has already pushed petrol prices above ₦1,000 per litre at the depot level, with the ex-depot price from the Dangote Petroleum Refinery now standing at about ₦1,175 per litre.

He explained that once logistics, transportation, and other operational costs are added, the final pump price could rise significantly, possibly reaching ₦1,500 per litre in the near future.

Despite concerns about the rising cost of fuel, Gillis-Harry noted that steady availability of petroleum products from the Dangote Refinery remains a major relief for Nigeria, stressing that consistent supply is better than a nationwide fuel scarcity.

He added that the refinery’s production capacity is helping to stabilize supply across the country at a time when global markets remain highly unstable.

The latest price adjustment by the Dangote Refinery marks the fourth review within two weeks. Petrol prices increased from ₦995 per litre to ₦1,175 per litre, while diesel rose from ₦1,430 to about ₦1,620 per litre.

The development comes amid a sharp spike in international crude oil prices triggered by fears of supply disruptions due to the ongoing Middle East conflict.

Brent crude recently climbed above $102 per barrel, while West Texas Intermediate (WTI) rose to around $101 per barrel.

Industry analysts say the rising oil prices are already having a ripple effect on Nigeria’s downstream petroleum sector, forcing depot operators and fuel marketers to adjust their prices in response to the global market trend.

Meanwhile, the management of Dangote Petroleum Refinery has stated that although Nigeria introduced a crude-for-naira arrangement to support local refineries, the facility still purchases crude oil at international market prices, leaving it exposed to global price fluctuations.

 

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