- CFO Confirms FG Owes N7.8 trillion As Subsidy Debts From January To July
- Atiku Demands Clarity On Petrol Subsidy Policy, Crude Oil Refining
- NNPCL Reports N3.3tr Profit In 2023, Revenue Hits N27.99tr
- Oil Marketers Reveals Reason For Fresh Fuel Scarcity
By Babajide Okeowo, Lawrence Enyoghasu And Adewale Ilesanmi
Amid constant denial by th Federal Government and relevant stakeholders, the Nigerian National Petroleum Company Ltd has confirmed the return of fuel subsidy.
The Matrix reports that President Bola Ahmed Tinubu on assuming office on May 29, 2023 had announced the total removal of fuel subsidy plunging the country into a chaos.
Since that announcement was made, Nigerians have been brought to their knees with prices of items quadrupling across the country.
However, amidst the claims of the removal of the fuel subsidy, prominent Nigerians have claimed that FG is still paying subsidy, this has been vehemently denied by the govt.
On April 15, Nasir el-Rufai, former governor of Kaduna state, said the federal government is spending more on petrol subsidy than before.
READ ALSO: NNPCL Refutes $6.8 Billion Debt
In the same vein, Gabriel Ogbechie, Chief Executive Officer of Rainoil Limited, two days later claimed the government now spends N600 billion on petrol subsidy monthly.
To lend credence to the claim, in June, some fiscal policy documents leaked which cited N5.4 trillion petrol subsidy provision for 2023, Wale Edun, Minister Of Finance And Coordinating Minister Of The Economy, said the documents were not approved by the government.
The lid was however lifted on the secrecy surrounding the return of fuel subsidy on Monday by the state oil company.
The Nigerian National Petroleum Company (NNPC) Limited revealed that the federal government owes it N7.8 trillion as petrol subsidy debts from January to July, 2024.
Umar Ajiya, NNPC’s Chief Financial Officer told Bloomberg, after the company announced its 2023 Audited Financial Results, that NNPC is owed N7.8 trillion ($4.9 billion) by the government in subsidy debts from January to July.
Ajiya said the government will allow NNPC to offset about N2.2 trillion it owes the country against the subsidy debt.
Meanwhile, former Nigerian Vice President, Atiku Abubakar has demanded clarity on petrol subsidy policy and crude oil refining from the federal government.
READ ALSO: Alleged $6.8b Indebtedness: NNPC Ltd Denies Owing International Oil Traders
In a post on X 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”.
“The latest revelations circulating through credible media outlets regarding the federal government’s covert continuation of the subsidy on premium motor spirit (PMS) represent another chapter in the opaque governance under President Bola Tinubu’s administration,” Atiku said.
“This development starkly contrasts with the president’s firm assertions in a national broadcast, which followed closely on the heels of public protests decrying poor governance, where he declared the subsidy regime concluded.
“However, disclosures prior to his announcement have consistently indicated a resurgence of subsidy payments, albeit through less transparent means.
“This dissonance between the president’s words and his actions not only undermines the moral fabric of his leadership but also significantly erodes the credibility of his administration.
“At a time when the nation grapples with severe fuel scarcity and escalating energy costs, the continued delays in the re-operation of the Port Harcourt refinery stand as a national disgrace — a failure that rests firmly on the shoulders of president Tinubu, who also holds the office of the minister of petroleum resources.
“Moreover, the persistent denials by NNPC Limited only exacerbate the plight of Nigerians, who endure severe difficulties due to fuel shortages and resultant price inflation.
“Amidst a contentious dispute between local investors favouring refinery operations and those advocating for imported PMS, the president’s silence is profoundly disconcerting.
“It is paramount that the president, who is intrinsically responsible for overseeing and intervening in such critical disputes to safeguard national interests, steps up to fulfil these expectations.
“It is imperative, therefore, that the Tinubu administration urgently clarifies the entanglements surrounding the subsidy policy and the refining of PMS.”
Continuing, Atiku said the alleged fund diversions by NNPC deepen confusion in the petrol subsidy controversy.
“The veil of secrecy shrouding the downstream petroleum sector, coupled with alarming reports of NNPC Limited diverting funds intended for other purposes to cover subsidy payments, adds layers of confusion that are unbearably unsettling.”
Atiku warned that if these reports are accurate, they could have serious consequences on the integrity of fiscal federalism.
In a related development, the state oil company has disclosed that its full-year profit increased by 29% to N3.3 trillion, while revenues increased to N27.99 trillion due to an increase in oil output.
For the year that ended in December, the corporation reported a profit of N3.3 trillion ($2.1 billion), up from N2.55 trillion the year before.
This was revealed on Monday during a presentation at an Abuja media briefing. Additionally, the business declared 24 trillion naira in total income; however, no comparable amount was given.
Oritsemeyiwa Eyesan, the Executive Vice President of NNPCL’s upstream division, stated at the briefing that Nigeria is currently producing 1.75 million barrels of crude oil and condensates per day. This marks an increase from the year-to-date average of 1.56 million barrels per day, as noted during the briefing.
In another development, as fuel queues has surfaced across Nigeria, oil marketers in the country under the aegis of Petroleum Products Retail Outlets Owners Association, (PETROAN), has attributed the latest scarcity to non supply by the state oil company , the Nigerian National Petroleum Company Ltd.
The oil marketers stated that they are currently supply constrained, and could only distribute what they have.
The President of (PETROAN), Billy Gillis-Harry made this known while appearing as a guest on Channels Television’s Morning Brief on Monday.
Hear him; “I think until we get our supply challenges sorted out efficiently and abundantly, we will not be able to get out of this circle.
“I believe you must have heard the NNPC’s communications director who explained that the issues at stake are still logistics-related.
“So until they get that resolved, we may just be managing the little they bring, and give to us to distribute among our members.
“NNPCL is doing its best to bring in products bit by bit, and we can only supply what we have.”
When asked to give further explanation on what the logistics challenges were all about, he said, “The logistics issue is about ship-to-ship transfer. Until the ship gets products, it cannot deliver to any of the depots. And until depots have products, we the retailers cannot also have access to products,”
He however assured that marketers were in talks with the NNPCL over supply challenges.
He said, “We have been speaking with NNPCL. We encourage them to do more, and I can assure you that they are trying their best.”
Over the weekend, fuel scarcity returned to several parts of the country with a litre of Premium Motor Spirit (PMS) popularly called petrol selling for as high as ₦1,000 in some filling stations, a move that increased the cost of transportation.
Some filling stations were, however, not selling the product as black market marketers are having a field day.
