NewStats: 3,262,400 , 8,177,038 topics. Date: Monday, 02 June 2025 at 07:27 AM 3k1s2x

The Nigerian National Petroleum Company (NNPC) Ltd says it is selling petrol, also known as motor spirit (PMS), at only half the land costing.

Umar Ajiya, the chief financial officer (CFO) of the NNPC, told NAN in Abuja on Monday that the national oil company is only bearing what he called the “shortfall” and not subsidy.

The official pump price of petrol is about N600/litre but the landing cost is around N1,200 — and Ajiya confirmed to Bloomberg that it cost the NNPC N7.8 trillion to make up for the “shortfall” in the first seven months of the year.

Subsidy is typically defined as selling a product below the cost price.
In official communication between NNPC and the president seen by TheCable, the word “subsidy” is used extensively to explain the “shortfall”.

TheCable had reported that President Bola Tinubu approved a request by NNPC to utilise the 2023 final dividends due the federation to pay for the subsidy.

However, Ajiya sought to deny the story during a media briefing on the company’s 2023 audited financial statements earlier on Monday, said the company was only “taking care of the shortfall on petrol importation between it and the federation”.
He, thereafter, told Bloomberg that NNPC is owed N7.8 trillion ($4.9 billion) by the government in subsidy debts from January to July 2024.

But in his “clarification” to NAN, Ajiya said subsidy has not been paid to any marketer in the last nine years — understandably because NNPC is the sole importer of petrol via contracts with suppliers.

“In the last eight to nine years, NNPC Ltd. has not paid anybody a dime as a subsidy; no one has been paid kobo by NNPC Ltd. in the name of subsidy,” Ajiya said.

“No marketer has received any money from us by way of subsidy.
What has been happening is that we have been importing PMS, which has been landing at a specific cost price, and the government tells us to sell it at half price.

“So the difference between the landing price and that half price is a shortfall.

“And the deal is between the Federation and NNPC Ltd., to reconcile, sometimes they give us money, so there is no money exchanging hands with any marketer in the name of subsidy.”

He was silent, however, on how much of the $4.9 billion could have gone into the federation if NNPC was not paying for the “shortfall”.

It is thought that the government of the All Progressives Congress (APC) seeks to distance itself from the use of the term because “subsidy scam” was one of the campaign weapons it used to dislodge the Peoples Democratic Party (PDP) from power in 2015.

https://www.thecable.ng/nnpc-we-are-selling-petrol-at-half-the-landing-cost-but-it-is-not-subsidy/amp/

Jokers

Is not subsidy, just loss.

this nigeria is as useless as the P in the word "psychology"

how on Earth do we explain how petrol is cheaper in Nigeria than Malta (where we import from)..how?...it must be a miracle ...

corruption no dey tire nigerian leaders/politicians..



ALL NIGERIAN POLITICIANS ARE FRAUD, DEMONS AND LOOTERS...

na people when dey any of them I dey pity...the way they feel Nigerians are dumb is mind blowing Sha..

nigeria is dead and buried..na the last money they wan thief finish so

Why are we importing petrol??

LOL!

....aka SUBSIDY

It is not subsidy, it is corruption and palliative mixed together for sure...

Then you're running at loss and thats not sustainable

How does this even make sense

Enough of the complains. Me go like work within this ministry one day make me sef dey give una this kin report wey no dey make sense

Lol 😂😂😂😂 APC sha

Watch come paid idiots come here and defend this rubbish

I shouted it since last year we have been playing subsidies without Budgeting for such but they all attacked me

Now the truth is Out

Yourprick:

https://www.thecable.ng/nnpc-we-are-selling-petrol-at-half-the-landing-cost-but-it-is-not-subsidy/amp/

Subsidy was NEVER Gone, but Mutairu Cardoso and Co believed otherwise. Nigerians are easy to deceive. Who now pays for the other half price, Nlfpmod.

mrvitalis:
Lol 😂😂😂😂 APC sha

Watch come paid idiots come here and defend this rubbish

I shouted it since last year we have been playing subsidies without Budgeting for such but they all attacked me

Now the truth is Out

You mean bot without head.

iwaeda:

You mean bot without head.

Honestly Jonathan ers were not this stupid

Hmm...

Ok... so the government is not 'paying' subsidy on PMS, but it is subsidising it by selling at a loss?

So why ask for the 'shortfall' to be written off if there is no subsidy or it is simply a 'loss'?

What the hell is really going on here?

So what is it? Discount? Palliative? 🤷

When you have illiterate heading critical sectors

What an explanation!

Watch APC bigots come for Obedients

Ok

Very confused folks....why can't they scrap that NNPC

Na come wetin.... Dis people really think Nigerians are dumb cha

mrvitalis:

Honestly Jonathan ers were not this stupid

We should all apologize to Jonathan honestly

The govt of ebola tealimbu BATeria that his empty headed imbecilic incurable f00lish followers claimed to be a "master strategist", propaganda and more propaganda.

The man only came to loot and destroy.

Tinubu is paying himself subsidy.

Yourprick:


https://www.thecable.ng/nnpc-we-are-selling-petrol-at-half-the-landing-cost-but-it-is-not-subsidy/amp/

NNPC the lie lie oil company of Nigeria

The official pump price of petrol is about N600/litre but the landing cost is around N1,200 — and Ajiya confirmed to Bloomberg that it cost the NNPC N7.8 trillion to make up for the “shortfall” in the first seven months of the year.

If this is not subsidy, then what is it?

Anyway whether you call it Shortfall or Palliative is not even the main issue. The major concern is that Govt should do everything possible to bring down the price of fuel, which will in turn help curb inflation.

Gwo gwo gwo ngwo

Something like;;

*I take people's possessions at gun point but I am not an armed robber, I am a hustler.

*I take money from government coffers, I am not a thief, I am only chopping.

I sleep with men for money, I am not a prostitute, I am a slay queen or runs girl.

This country is just one huge joke, a theatre of the absurd.

I laugh this one ooo.

Shortfall is not subsidy. Hahahahaha!

Buzz Lightyear also claimed he is not flying, but falling with style.

So we can clearly see that subsidy was not removed. The gains were simply redirected from the marketers to Tinubu and his cronies.


Why then are we buying it at 5 times the initial price?

Vultures of babablu. Tinubu is a disaster fashioned against Nigeria.

The clown is paying subsidy but petrol price went from 200 naira to 650 naira and now to 900 naira. This shows that Tinubu is the cabal looting our money.

Nonsense and ingredients!