NNPC acknowledges payment but clarifies that it is not for a fuel subsidy.

The Nigerian National Petroleum Company Limited (NNPC Ltd.) claims that for the previous nine years, it has not given fuel subsidies to any individuals.

Alhaji Umar Ajiya, the company's chief financial officer, provided the explanations on Monday in Abuja.

According to Ajiya, NNPC Ltd. solely deals with the importation gaps of Premium Motor Spirit (PMS) between the federation and the firm.

"NNPC Ltd. has not given anybody a dime in subsidies over the past eight to nine years; no one has received money from NNPC Ltd. under the guise of subsidies."We have never given any money as a subsidy to a marketer.

We have been importing PMS, which has been the situation The government instructs us to sell it for half the price even if it has been landed at a specific cost price.There is a discrepancy, then, between the landing price and that half price.

"And to reconcile, sometimes they give us money, therefore there is no money moving hands with any marketer in the guise of subsidy," he stated. "And the arrangement is between the Federation and NNPC Ltd.

According to him, credit lines are common in downstream companies because of the global trade system.

He continued by saying that the business had previously had term-line contracts for payment under an open credit arrangement with PMS suppliers.

Furthermore, according to Dapi Segun, NNPC Ltd.'s Executive Vice President of Downstream, creating an open credit agreement with providers spoke eloquently about the national oil company's gradually developed trustworthiness.

Regarding the amount still owed to the vendors, it is less than the $6.8 billion that has been disclosed.

"Our relationship with our suppliers is what counts most in order to guarantee that we continue to pay our suppliers as we have in the past.

"I wouldn't want to quote any figures, and you would understand that it's not a static figure. It decreases when we pay, and it increases when they provide goods.

"It's a dynamic approach, but the most crucial thing is to make sure that PMS remains accessible throughout the nation," he stated.