Nigerian National
Petroleum Corporation NNPC
yesterday in Abuja revealed
that the Nigerian Federation
was indebted to the corporation
to the tune of N170.6 billion
outstanding subsidy payments
due from January 2006 to
December, 2015.
The corporation in a
plea called on the Senate
Downstream Committee to
assist in ensuring that the
outstanding debt was settled
to enable NNPC effectively
achieves its obligation as the
supplier of last resort to the
downstream sector.
Leading a team of Top
Management of the NNPC
to the ongoing Investigative
hearing on N5 trillion subsidy
payments from 2006 to 2016,
the Group Managing Director
of the Corporation, Dr.
Maikanti Baru, said the figure
was arrived at after deduction
of N4.950.80 trillion received as
payments from the N5.121.40
trillion approved subsidy
claims of the corporation from
January 2006 to December
2015.
Providing details of the
accruals, Chief Financial
Officer of the corporation, Mr.
Isiaka AbdulRazaq, traced
the advent of the subsidy
regime to October, 2003
when NNPC was directed by
government to commence the
purchase of domestic crude
oil at international market
price without a corresponding
liberalization of the regulated
price of petroleum products.
He explained that under
the subsidy regime, NNPC
and other suppliers of refined
petroleum products were
entitled to file subsidy claims to
the Petroleum Products Pricing
Regulatory Agency (PPPRA).
Mr. AbdulRasaq, however,
noted that unlike other Oil
Marketers, 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, 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,’’ the NNPC CFO
said. Chairman of the Senate
Committee, Senator Kabiru
Marafa, commended NNPC
for the elaborate presentation
while pledging its support to
all stakeholders in the sector to
ensure uninterrupted supply
and distribution of petroleum
products.

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