The Nigerian National Petroleum Corporation (NNPC) has disclaimed the insinuation that it had in its custody over 1.3 trillion Naira ($3.5 billion) Subsidy fund. 

The issue was raised during Senate Plenary on Tuesday, with Senator Abiodun Olujimi, saying the funds were in control of just two top NNPC's officials. 

She cited a publication on ThisDay newspaper on the issue. 

But the spokesman for the NNPC, Ndu Ughamadu, in a release later on Tuesday in Abuja, explained that at the heat of the shortage of products supply at the close of last year, the National Assembly asked the NNPC to do everything possible to stem the hiccups.

Mr Ughamadu said that accordingly, the NNPC initiated the move to raise a revolving fund of $1.05 billion, since the corporation was, and still is, the sole importer and supplier of white products in Nigeria.

"Ever since, the fund had been domiciled in the Central Bank of Nigeria and at no time was it in the custody of the NNPC.

"The fund, dubbed the National Fuel Support Fund, had been jointly managed by the NNPC, the Central Bank of Nigeria, the Federal Ministry of Finance, the Petroleum Products Pricing Regulatory Agency, Office of the Accountant General of the Federation (OGF), the Department of Petroleum Resources and the Petroleum Equalisation Fund (PEF)," he said.

Also Read: FRAUD?! Olujimi Blows Whistle On NNPC MD Baru Over 1.3 Trillion Naira

Mr Ugbamadu further explained that the NNPC did not independently spend a dime of the fund which he said was to ensure stability in the petroleum products supply in the country.

The NNPC spokesman added that for the avoidance of doubt, the corporation was fully aware that it was only the National Assembly that had the statutory responsibility to appropriate on petroleum subsidy matters.

This clarification came after the Senate had agreed to look into the issues raised by Senator Olujimi, with the Committee on Downstream saddled with the responsibility of investigating to find the fact.

They are to summon top officials of the NNPC to give account. The committee was given four days to complete the finding and report back to the Senate for deliberations. 

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