In a startling revelation, the Nigerian National Petroleum Company Limited (NNPCL) has demanded a refund of over N4.71 trillion from the Federal Government to settle outstanding debts used to import Premium Motor Spirit (PMS), commonly known as petrol, into the country.
The claim, which was described as “Exchange rate differential on PMS and other joint venture taxes” on petrol products imported by the company between August 2023 and June 2024, was disclosed by the Minister of Finance and the Coordinating Minister of the Economy, Wale Edun, at the June meeting of the Federation Accounts Allocation Committee.
According to the minutes of the meeting obtained by our correspondent, the NNPCL stated that it had presidential approval to use the “Weighted Average Rate” from October 2023 to March 2024 for its fuel imports, resulting in the significant outstanding claim.
This development contradicts the government’s earlier claims that fuel subsidies have been eliminated, as the difference in the actual cost of imports and the retail price is effectively being borne by the government.
The Commissioner of Finance for Akwa Ibom State, Linus Nkan, sought further clarification on how the N2.6 trillion exchange rate differentials against the federation came about, highlighting the need for transparency in the process.
The NNPCL’s General Manager, FAAC office, Joshua Danjuma, confirmed that the claimed amount was to cover the landing cost of PMS, which had significantly increased by May 2024 due to changes in the exchange rate.
The revelation comes amid ongoing challenges faced by the petroleum company in ensuring the adequate supply of PMS to marketers for distribution nationwide.
As the government continues to navigate the complex energy landscape, the NNPCL’s demand for a multi-trillion-naira refund underscores the need for a comprehensive review of the country’s fuel import and pricing policies to ensure transparency and accountability.
