Nigeria’s state oil company, Nigeria National Petroleum Corporation, NNPC on Wednesday denied the Senate’s accusation that it had a $3.5 billion fund to secretly subsidise petroleum products importation.

Recall that the Senate had said on Tuesday that it would investigate the fund it said the NNPC was using without getting approval from the National Assembly via the national budget.

NNPC responded with a statement titled: “We Don’t Have $3.5 Billion Subsidy Fund”.

Instead, it said a $1.05 billion “National Fuel Support Fund” did exist, set up by the company “to ensure stability in the petroleum products supply”.

Also Read: It Is Sacrilege To Blow 1.6 Trillion Naira On Fuel Subsidy – Afrinvest

That fund was jointly managed by a group of bodies that included the NNPC, the central bank and the finance ministry, the statement by NNPC spokesman Ndu Ughamadu said.

The fund was “domiciled” in the central bank and “NNPC did not independently spend a dime” of it, it added.

As fuel prices increase globally, it has become unprofitable for private petrol marketers to import, with the NNPC stepping in to prevent major shortages.

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