Abuja – The Nigerian National Petroleum Corporation (NNPC) has said that it was still being owed N170.6 billion by the Federal Government as outstanding subsidy payments between January 2006 and December 2015.

The NNPC disclosed this on Monday at a public hearing on the investigation of over N5 trillion subsidy payment to the corporation between 2006 and 2016 by the Senate Committee on Petroleum Resources (Downstream) chaired by Kabiru Marafa (APC, Zamfara Central).

Making a presentation on behalf of the NNPC, Isiaka AbdulRazaq, the corporation’s Chief Financial Officer, said NNPC was being owed N170.6 billion by the Nigerian federation.

He explained that the amount was arrived at after deduction of N4.950 trillion received as payments from the N5.121 trillion approved subsidy claims of the corporation from January 2006 to December 2015.

AbdulRasaq called on the committee to assist in ensuring that the outstanding debt was settled to enable NNPC effectively achieve its obligation as the supplier of last resort to the downstream sector.

He 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 liberalisation 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).

The CFO, 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 paid to the Federation Account after due certification by ..............

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