NNPC Reacts To $3.5 Billion Subsidy Fund Claims

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NNPC recorded N197 billion loss in 2016

NNPC Reacts To $3.5 Billion Subsidy Fund Claims

The Nigerian National Petroleum Corporation (NNPC) on Wednesday, October 17, reacted with a denial to claims that it has in its custody 3.5 billion dollars Subsidy fund.

The Senate had on Tuesday resolved to set up an ad hoc committee to investigate $3.5bn Subsidy Recovery Fund allegedly created by the NNPC and solely managed by its Group Managing Director Emmanuel Ibe Kachikwu and the Executive Director Finance, Dennis Nnamdi Ajulu.

However, the NNPC Group General Manager, Group Public Affairs Division, Ndu Ughamadu, dismissed the claims in a statement, noting that at the height of the shortage of products supply at the close of 2017, the National Assembly asked the NNPC to do everything possible to stem the hiccups.

Ughamadu said the corporation initiated the move to raise a revolving fund of 1.05 billion dollars, since the corporation was, and still the sole importer and supplier of white products in the country.

The NNPC spokesman said ever since the fund had been domiciled in the Central Bank of Nigeria. He added that at no time was it in the custody of the NNPC.

Ughamadu said, “The fund, dubbed the National Fuel Support Fund, had been jointly managed by NNPC, the Central Bank of Nigeria, the Federal Ministry of Finance and the Petroleum Products Pricing Regulatory Agency, Office of the Accountant General of the Federation, the Department of Petroleum Resources, and the Petroleum Equalization Fund.”

Hence, NNPC cannot independently spend a dime of the fund which Ughamadu said was meant to ensure stability in the petroleum products supply in the country.



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