The Nigerian National Petroleum Company Limited (NNPCL) has requested a refund of N2.6 trillion for foreign exchange differences related to fuel imports from August 2023 to June 2024.
According to the Finance Minister, Wale Edun, the claim has risen to N4.71 trillion due to recent increases in the foreign exchange rate.
NNPCL had presidential approval to use a “Weighted Average Rate” for fuel imports from October 2023 to March 2024.
The General Manager of the FAAC office at NNPCL, Joshua Danjuma, clarified that the refund claim is meant to cover the landing cost of petrol.
The amount claimed by NNPCL has surged because of changes in the rate used to source foreign exchange for fuel.
Minutes from a recent meeting revealed that the outstanding claim amounted to N2.69 trillion as of May 2024. This figure has continued to grow, with a breakdown showing an increase from N1.18 trillion in August 2023 to N4.71 trillion by June 2024.
The claim contradicts statements by the Minister of Petroleum Resources, Heineken Lokpobiri, who declared the removal of the fuel subsidy.
Despite President Bola Ahmed Tinubu’s announcement of subsidy removal in June 2023, recent reports suggest that fuel subsidies might have been reintroduced.
The International Monetary Fund and World Bank have indicated potential reintroduction of subsidies, while former President Olusegun Obasanjo has mentioned their return due to inflation.
As of July 2024, major energy marketers reported a rising monthly subsidy cost, and fuel prices range between N617 to N800 per liter across Nigeria.
(The News Digest)
