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“We did not Instruct NNPC to Raise Fuel Prices”- FG Says

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Barely weeks after declaring a net profit of N3.3 trillion in the 2023 financial year, with a purported increase of over N700 billion (28%) when compared to the 2022 profit of N2.548 trillion, NNPC has announced it is under intense financial pressure.

The Federal Government has refuted reports claiming that it instructed the Nigerian National Petroleum Company Limited (NNPCL) to sell fuel at ₦1,000 per litre, which is far above the approved pump price

In a statement released on Tuesday, the government called the allegations “baseless and malicious.” The reports emerged following comments made by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, during the 2024 Energy and Labour Summit in Abuja. He discussed the challenges of smuggling and mentioned that if NNPC sells fuel at a lower price, it could encourage smuggling. However, the government clarified that this was not a directive for price hikes.

Nneamaka Okafor, the Special Adviser on Media and Communication to the minister stated that the government has not interfered with NNPCL’s pricing decisions. She reiterated that since the Petroleum Industry Act (PIA) was enacted in 2021, NNPCL operates as an independent entity, and its Board makes its pricing decisions of Directors without government intervention. The recent controversy around the sale of NNPC’s retail division to OVH Energy Marketing, largely run by President Bola Tinubu’s nephew, however, raises concerns about the extent of NNPC’s independence.

The statement challenged those spreading the rumours to present evidence if they have any. The government stressed that the NNPCL operates under the Companies and Allied Matters Act (CAMA) and is not subject to federal directives on pricing.

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