The Nigerian National Petroleum Company Limited has denied paying fuel subsidies to marketers in the last nine months, but confirmed that the Federal Government pays subsidies on imported petrol.
The company’s Chief Financial Officer, Alhaji Umar Ajiya, made the clarification on Monday in Abuja.
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He explained that the government allows NNPCL to sell petrol at a price below the landing cost, resulting in a shortfall. Ajiya stated that the company is only handling petrol importation shortfalls between it and the federation.
He added that credit lines are prevalent in downstream businesses based on the worldwide commercial system.
The Executive Vice President of downstream at NNPCL, Dapo Segun, said that establishing an open credit agreement with suppliers spoke volumes about the credibility the national oil company had built over time.
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