The Nigerian National Petroleum Corporation, NNPC has Explained in Details Reason for Fuel Price Hike in Nigeria.
Reports reaching us has revealed that between the month of January 2017 and June 2020, the Nigerian National Petroleum Corporation, NNPC, paid itself N1.53 trillion as subsidy on Premium Motor Spirit, PMS, also known as petrol.
This was seen in a series of documents obtained, today from the corporation.
According to the documents, in 2017, 2018 and 2019, the NNPC paid itself N144.53 billion, N730.86 billion and N551.22 billion respectively; while from January to June 2020, the NNPC deducted N106.992 billion from its total remittances as subsidy.
The document also revealed that in 2015, the government had paid N306.917 billion to oil marketers and the NNPC as subsidy, while no amount was spent on subsidy in 2016.
The NNPC called the payments under recovery, another name for subsidy, and deducted it from the proceeds of its domestic crude oil sales, before making remittances to the Federation Account.
In a bid to ensure that it doesnt go contrary to the law, it was learnt that the NNPC coined the term ‘under recovery’, because subsidy was not appropriated for in the budgets of the affected years.
In addition to the amount it said it incurred as under recovery, Group Managing Director of the NNPC, Mallam Mele Kyari, in a statement by the corporation in Abuja, disclosed that government spent N2.13 trillion from 2016 to 2019, as subsidy on foreign exchange for marketers.