We’ve received N4.9trn so far for subsidy, NNPC tells Senate

The Nigerian National Petroleum Corporation (NNPC) has revealed that it received more than N4.9trillion as payments for subsidy on Premium Motor Spirit(PMS), popularly known as petrol between 2006 and 2015.
Its Chief Finance Officer, Isiaka Abdulrazak, disclosed this, on Monday, during a public hearing conducted by the Senate Committee on Petroleum (Downstream), in Abuja.
Top officials of the corporation, who appeared at the investigative hearing, were led by its Group Managing Director, Maikanti Baru.
The NNPC officials were summoned by the lawmakers amid the persisting fuel scarcity in the country and the controversy over the payment of fuel subsidy.
Briefing the senators on the issue, Abdulrazak said that subsidy payments were duly approved by the Petroleum Products Pricing Regulatory Agency (PPPRA).
“All NNPC’s subsidy claims and entitlements are duly verified and approved by PPPRA with relevant certificates issued,” he was quoted as saying by the corporation.
“The subsidy approved for NNPC is backed out of Domestic Crude Cost payable to Federation Account Allocation Committee (FAAC).”
On the essence of the payment, Abdulrazak explained that subsidy was a duly authorised reimbursable amount from Petroleum Support Fund (PSF) to compensate for products supplied at the government regulated price.