NNPC Denies $3.5bn Subsidy Fund, Says $1.05bn Was Raised Instead

However, the NNPC has denied claims by the Senate that it has in
its custody a $3.5 billion subsidy fund managed by its top
management.

Rather, the corporation said in a statement sent to our reporter
last night by its Group General Manager, Public Affairs Division,
Mr. Ndu Ughamadu, that it raised and kept $1.05 billion subsidy
fund with the Central Bank of Nigeria (CBN).

It explained that at the heat of the shortage of petrol supplies
towards the end of 2017, the National Assembly asked it to do
everything possible to stem the supply shortage and it initiated a
revolving fund of $1.05billion for this purpose.

NNPC stated that since it was, and still is the sole importer
and supplier of petrol in the country, it had to do this, adding
that ever since then, the fund had been domiciled in the CBN and
not in its custody.

According to NNPC, the fund is called the National Fuel Support
Fund, and had been jointly managed by it; CBN; Federal Ministry of
Finance; Petroleum Products Pricing Regulatory Agency (PPPRA);
Office of the Accountant General of the Federation (OAGF); the
Department of Petroleum Resources (DPR); and the Petroleum
Equalisation Fund (PEF).

It also said it did not independently spend a dime of the fund,
noting that it was meant to ensure stability in petroleum products
supply in the country.
Additionally, Ughamadu said in the statement, “For the avoidance of
doubt, the corporation was fully aware that it is only the National
Assembly that has the statutory responsibility to appropriate on
petroleum subsidy matters.”