NNPC speaks on alleged N3.3 trillion inflated subsidy claims under Buhari

The Nigerian National Petroleum Company Limited (NNPCL) has denied reports that it inflated the subsidy on petrol by N3.3 trillion under the administration of former President Muhammadu Buhari.

The company argued that it has verifiable claims, saying that all relevant records on subsidy have been forwarded to the agencies in charge.

NNPC is now a commercial entity

In a statement posted on its X page on Monday, July 10, 2024, the company’s spokesman, Olufemi Soneye, said it was not aware of any impending audit of its accounts, as some quarters reported.

NNPC said: “NNPC notes with dismay a report in a section of the media alleging that it inflated subsidy claims by N3.3tn, and wishes to state that NNPC conducts its businesses with accountability and transparently in keeping with international best practices and has, at no time, inflated its subsidy claims with the Federal Government.

“All previous subsidy claims by the company are verifiable as relevant records and documents have been sent to appropriate authorities and agencies.

According to reports, the national oil firm said it will resist any attempt to dent its image and drag it into the politics of fuel subsidy as it now operates as a commercial entity based on the Petroleum Industry Act (PIA) provisions.

On several occasions, the NNPC said it had invited external auditors to review its books.

The company asked the media to be cautious and verify their information before publication in line with the profession’s ethics.

FG admits the return of subsidy

In a recent report, the Nigerian government finally acknowledged that Nigeria, the largest oil-producing nation in Africa, would spend up to N5.4 trillion on petrol subsidies in 2024.

This follows months of administration representatives adamantly denying such subsidies. Before this, the federal government insisted that it stopped subsidizing fuel prices and instead pursued deregulation.

Heineken Lokpobiri, minister of state for petroleum resources (Oil), said in April.

At his inaugural address, President Bola Tinubu announced the scrapping of subsidies, which hiked the price of petrol. NNPC released price adjustments at retail outlets nationwide.