Sidebar

Exclusive Reports

28
Thu, Mar

Fuel Subsidy Regime: Reps To Investigate Alleged Diversion Of $7billion Under Buhari Watch

Economy
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

The house of Representatives has inaugurated an Ad-hoc committee to probe the subsidy regime under President Buhari's administration from the year 2017 – 2021. This was a follow-up to a motion put forward by one of its members, Segun Ose Ogun.
The lawmaker in the motion expressed dissatisfaction that a lot of unethical transaction has been going on describing it as “Unscrupulously” being deployed by the NNPCL and other key players in the industry as a self-serving venture to the detriment of larger Nigerians short-changing the country of its revenue to the tune of $10billion which are verifiable.


He alleged that as of 2021, over $ 7 billion in over 120million barrels of crude oil has been diverted by certain vested interests.
He further accused the key players of duplicating the subsidy amount by round-tripping it in other to collect more money from the government. 

Honourable Ose further alleges that the corruption is being perpetrated at both the petroleum sales in the record of the NNPCL and at the crude oil sale by NAPIMS making it double jeopardy to the Nigerian revenue up to 2trillion. 

The lawmaker explained that component costs in the petroleum products subsidy value chain claimed by the NNPC Ltd are “highly over-bloated while the transfer pump price per litre used by the NNPC Ltd in relation to PPMC is under-quoted as N123-N128 instead of N162-N165 and this fraudulent under-reporting of N37-N39 per litre translates into over 70 billion nairas a month or 840 billion nairas a year. 

He further lamented that the House is worried that the consumption rate of Petroleum Motor Spirit (PMS) is 40 million to 45 million litres per day; however, the NNPC Ltd uses 65 million to 100 million litres per day to determine subsidy as discoverable from NNPC’s monthly reports to the Federal Allocation Committee (FAAC)”. 

He recalled to the House that as of 2002, the NNPC’s purchase of crude oil at international market prices stood at 445,000 barrels per day in order to enable it to provide petroleum products for local consumption. 

More so, as the installed capacity of Nigeria’s local refineries stood at 445,000 barrels per in the same year 2002. 

However, their capacity utilization began to nosedive and eventually fell completely to zero due to the ineffectiveness and alleged corruption of critical stakeholders in the value chain. 

The lawmaker added that due to the decline in the production capacity of the refineries, NNPCL has resolved to trade by batter like of production through sales direct purchase. 

Meanwhile, Speaker of the House, Femi Gbajabiamila while ruling on the motion said, the issue of the subsidy regime has been bothering the country as cancer describing the motion as timely. 

He, therefore, directed the deputy Speaker of the House, the House leader and the Chief Whip to come up with an Ad-hoc team that will handle the investigation of the subsidy regime.

 

 

 

BLOG COMMENTS POWERED BY DISQUS