The Nigerian National Petroleum Company Limited has said that it will reconcile fuel subsidy deductions with the Federal Government, after stating that no fuel subsidy payments were made to marketers since January 2016.

The company stated this on Tuesday, July 4 when it posted a before and after fuel subsidy factsheet via their official account on Twitter.

It is important to also note 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.

Meanwhile, in the Nigeria Development Update report from the World Bank, it was stated that the recent decision to remove the fuel subsidy marks a crucial initial step towards restoring macroeconomic stability, creating fiscal space, and improving growth prospects. The World Bank report stated that the removal of the subsidy will improve Nigeria’s fiscal position.

This is because it sets the foundations for a more resilient, faster-growing economy. However, the overall fiscal impact of the decision will depend on several factors, including how the Government plans to use savings from the fuel subsidy regime.

Other facts the NNPCL posted on Tuesday, were:

Payments
Before – No marketer is paid petrol subsidy by NNPC Limited as marketers buy below-cost price

After – Marketers will now pay the cost price as determined by the market

Debt burden
Before – Federation continuously in debt for subsidy payment

After – End of a burden, the beginning of a new era of renewed hope and opportunities

Settlements
Before – NNPC Limited pays suppliers either cash or delivers the equal value of crude oil volumes as settlement.

After – Crude oil swap deals will phase out

Supplies
Before – Suppliers import products on commercial terms for NNPC Limited on the back of their credit abilities.

After – NNPC Limited will no longer be the sole importer of petroleum products

What you should know
Mele Kyari had stated earlier 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.

basilo102:
Which means they shared the subsidy money. Which means actual price without subsidy should be 180. Which means Tinubu only increased the price to recoup his election bribery

nairalanda1:


In 2016, Buhari made NNPC the sole importer of fuel.(to cut subsidy costs, as before there were many importers, including marketers).

That meant that NNPC was importing fuel at a certain price and selling to market below that price. (As at 2022 Aug, NNPC was bringing in fuel at N391, and market price was around N186)

At the end of the day, NNPC loses money from doing that, so government pays them a subsidy...or compensation for that.

As for whether there was looting...that;s for an audit to answer.

TemplarLandry:
This NNPC is the major corruption channel in Nigeria.
Mele Kyari and his cronies are about to witness the wrath of Jagaban.

I dedicate “Patiently Waiting” by 50 Cent & Eminem to every well-meaning Nigerian who believes Jagaban has brought us #RenewedHope.

DatNiggaDaz:
You forgot emefiele

DatNiggaDaz:
You forgot emefiele

Not your God & personal saviour Buhari who made the corruption saraka . Not your bobo Chicago Tinubu who ride's in bullion vans from proceeds of corruption ba . Your group of thoughts praised Buhari to high heavens cos of body odour

Now is the time to praise the bullion vans abi.

Una no like Nigeria at all at all

Tufiakwa

TemplarLandry:
Lol. Emefiele comes second.
The NNPC corruption via fuel subsidy has been on for decades. I like your username by the way. Daz Dillinger.

TemplarLandry:
Lol. Emefiele comes second.
The NNPC corruption via fuel subsidy has been on for decades. I like your username by the way. Daz Dillinger.

BlackSpanner:
This new revelation by NNPCL will favour me and my family. Nigeria!!! One week, one trouble

Tochi3:
Are you gay

Like kwa

advanceDNA:
Lol....since 2016?? Marketers no collect any money?? ...so marketer have been supplying fuel on credit for 8 years ??

This goverment!!!!
Una no dey tire to steal...

Nigerians about to be scammed again....
Federal goverment about to give us one dirty explantion of how they said they've been borrowing to pay but technically they have not been paying......


Tinubu puts a call tru to chief of staff...

"ogbení...get me lai mohammed...only he can package this lie to nigerians with a straight face, no pity, and ofcourse, with a horrible looking cap"

jude79:



Hahaha, anyway, I have guys in the oil sector, the gist is that there was no subsidy, in order words, tinubu removed nothing, he only increased the price of fuel, the masses should continue to sacrifice and pray fervently for our insatiable leaders to live lavishly, it's the least we can do as patriotic citizens, other increments are on the way, but citizens are allowed to get used to the high fuel cost punishment, before other punishment can be introduced, this shows how merciful and considerate our leaders are.

advanceDNA:


U know the sad reality now......they are making masses beleive these "reforms" they are introducing are for the benefit if the masses......making d suffering masses keep cheering them on in suffering