NNPCL To Reconcile Subsidy Deductions As No Payments Were Made To Marketers Since 2016

Following a revelation that no fuel subsidy payments were made to marketers since January 2016, the Nigerian National Petroleum Company Limited (NNPCL) says it will reconcile fuel subsidy deductions with the Federal Government (FG).

This was revealed on Tuesday, July 4 when it posted a before and after fuel subsidy factsheet via their official account on Twitter.

What this implies is that NNPCL has been the sole importer of PMS and it sells to marketers at an already subsidized price from the government.

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Recall, that two days after President Bola Ahmed Tinubu announced an end to fuel subsidies in the country, Mele Kyari, the Group Chief Executive Officer of the NNPC Limited said the Federal Government owed it over $6 billion (N2.8 trillion). This is the exact amount that the NNPCL has paid to keep fuel cheap.

Also, recall that Kyari stated that the fuel subsidy regime only benefitted about 10% to 15% of Nigerians because the regime was mainly helpful to those who belong to the elite or upper middle class. According to him, those who benefitted from the fuel subsidy regime were the upper class in society because they have a wide range of vehicles that are not used for mass transportation.