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The Nigerian National Petroleum Company Limited (NNPC Ltd.) claims it has not provided fuel subsidies to anyone in the last nine months.
The company's Chief Financial Officer, Alhaji Umar Ajiya, clarified the situation on Monday in Abuja.
Ajiya stated that NNPC Ltd. was exclusively handling Premium Motor Spirit (PMS) importation deficits between the firm and the federation.
"NNPC Ltd. has not paid anyone a cent in subsidies in the last eight to nine months; no one has received Kobo from NNPC Ltd. under the name of subsidies.
"No marketer has received any money from us as a 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 the half-price is a shortfall.
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"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," according to him.
He claimed that credit lines are common in downstream industries based on the global commercial system.
He further stated that the company previously had an open credit relationship with PMS vendors, with payment terms outlined in contracts.
Also, Dapi Segun, Executive Vice President of downstream at NNPC Ltd., stated that creating an open credit agreement with suppliers demonstrated the national oil company's long-term credibility.
"In terms of outstanding to suppliers, it is less than the $6.8 billion that has been reported.
"What really counts is the relationship we have with our suppliers to guarantee that we continue to make these payments to them, as we have done in the past.
"You'd understand that it's not a static figure, and I'd rather not quote any figures. When we make payments, it decreases; when they give items, it increases.
"It is a dynamic way, but the most important thing is to ensure that we continue to make PMS available across the country," he explained.
NAN