NNPCL’s N1.19 TRILLION SUBSIDY REFUND REQUEST SPARKS CONTROVERSY
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GREATRIBUNETVNEWS–Nigerian National Petroleum Company Limited (NNPCL) has requested an additional subsidy refund of N1.19 trillion for July 2024, citing exchange rate differentials on Premium Motor Spirit importation and joint venture taxes.
However, state governments have raised concerns over NNPCL’s accounting practices, leading to a heated debate over the request.
These findings were based on the Federation Account Allocation Committee Postmortem Sub-Committee report for September 2024,which was obtained by The PUNCH on Monday
The report revealed that exchange rate differentials stood at N4.56tn as of June 2024 [due to under-recovery on petrol imports between August 2023 and June 2024], but this figure increased to N5.31tn by July 2024
The NNPCL attributed the rise in subsidy claims to fluctuations in foreign exchange rates and unresolved subsidy payments from previous months. However, the FAAC Sub-Committee raised concerns over discrepancies in the figures submitted by NNPCL, noting that the amount had not been included in earlier FAAC reports.
Key Issues Raised:
– _Discrepancies in NNPCL’s accounting practices_
– Lack of transparency in subsidy-related reporting_
– Increasing cost burden on the government for petrol under-recovery_
– _Contradiction between government’s claims of eliminating subsidies and actual spending on fuel subsidies_
During the September meeting with agencies,the NNPCL informed the FAAC Postmortem Sub-Committee that the N1.19tn figure was an actual under-recovery amount, which included adjustments for June and July 2024
The controversy surrounding NNPCL’s subsidy refund request has sparked concerns over the sustainability of the partial subsidy framework and the impact of subsidy payments on the Federation Account.
