The Nigeria National Petroleum Corporation (NNPC) has disclosed why it pays subsidy on petrol without appropriation from the National Assembly.
Managing Director of the Petroleum Products Marketing Company (PPMC) Umar Ajiya said the NNPC Act is a law on its own which the corporation implements with or without the National Assembly.
Speaking to Channels on Friday, he admitted that the corporation has been paying N26 due to differentials in landing cost and approved selling price but declined to tag it subsidy.
Ajiya said: “For us, it’s not a question of subsidy, we don’t know about subsidy. It was not budgeted for but the act establishing us, the National Assembly knows clearly that in that same act, there is a provision that we can run our operation and recover our cost fully.
“There is a difference between the landing cost and the price we are selling but what we are saying is that is part of our core structure.
“The NNPC act is a law on itself and the National Assembly is the one responsible for enacting laws, so, if there is any remedy or solution; as one of the senators, the issue is look into the Act establishing these entities; NNPC, CBN etc.”
The PPMC boss attributed the recent fuel queues to poor transportation system in the country, which has hampered smooth circulation of products, and dubious purchase in major cities.