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FG Owes Us N170.6b – NNPC Reveals

SAN FRANCISCO, January 29, (THEWILL) – The Nigerian National Petroleum Corporation (NNPC) has revealed that the government is indebted to it to the tune of N170.6 billion in unpaid Subsidy Claims between January 2006 and December 2015.

This was disclosed by the NNPC Group Managing Director, Maikanti Baru, before the Senate Investigative hearing on the N5 trillion Subsidy payments from 2006 to 2016 saying that the figure was computed after the deduction of N4.950.80 trillion received as payments from the corporation’s N5.121.40 trillion approved subsidy claims within the period.

Supporting the claim, the Chief Financial Officer of the NNPC, Mr. Isiaka AbdulRazaq, who was also at the hearing with Baru, traced the advent of the subsidy regime to October, 2003 when the NNPC was directed by the government to begin the purchase of domestic crude oil at international market price without a corresponding liberalisation of the regulated price of petroleum products.

He explained that under the subsidy regime, the NNPC and other suppliers of refined petroleum products were entitled to file claims to the Petroleum Products Pricing Regulatory Agency (PPPRA) but revealed that unlike other oil marketers, the NNPC did not receive cash payment for subsidy claims as its subsidy claims were deducted out of cost payment to the Federation Account after due certification by PPPRA.

“In summary, the NNPC submits that the amount of over N5.1 trillion was duly approved by PPPRA as subsidy claims for NNPC. Out of this sum, NNPC is still being owed N170.6 billion,” he stated.

Responding, Senator Kabiru Marafa, Chairman of the Committee, pledged to support stakeholders in the sector to ensure uninterrupted supply and distribution of petroleum products.

This post first appeared on News In Nigeria, please read the originial post: here

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FG Owes Us N170.6b – NNPC Reveals


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