The Nigerian National Petroleum Company Limited (NNPC Ltd.) has stated that it has not made any fuel subsidy payment to anyone in the last nine months.

The disclosure was made on Monday by the Chief Financial Officer of the company, Alhaji Umar Ajiya in Abuja.

According to Ajiya, NNPC Ltd only handles Premium Motor Spirit (PMS) importation shortfalls between the company and the federation.

“In the last eight to nine months, NNPC Ltd. has not paid anybody a dime as a subsidy; no one has been paid Kobo by NNPC Ltd. in the name of subsidy. No marketer has received any money from us by way of subsidy.

“What has been happening is that we have been importing PMS, which has been landing at a specific cost price, and the government tells us to sell it at half price. “So the difference between the landing price and that half price is a shortfall.

“And the deal is between the Federation and NNPC Ltd., to reconcile, sometimes they give us money, so there is no money exchanging hands with any marketer in the name of subsidy,” he stated.

Speaking further, Ajiya said credit lines are prevalent in the downstream business based on the worldwide commercial system,

He revealed that NNPC Ltd. has had an open credit agreement with PMS suppliers in the past, with term lines agreement for payment.