Wednesday, 5 February 2014

Kerosene Subsidy Is A Scam,NNPC Yet To Account For $20 Billion - Sanusi



Central Bank Governor,is Sanusi Lamido Sanusi, yesterday, told the Senate Committee on Finance that of the $67 billion crude oil sales that was supposed to be remitted to the Federation Account, only $47 billion had been reconciled between the Nigeria National Petroleum Corporation, NNPC and CBN.
But the Committee’s Chairman, Ahmed Makarfi, cautioned the CBN Governor over making wild and unsubstantiated allegations without concrete and specific figures to back them up.
The NNPC, in a swift reaction, however, dismissed the allegation of another unremitted $20 billion oil revenue raised against it by the CBN.
It is uncertain how Sanusi came up with the fresh $20 billion unremitted funds against the initial $10.8 billion. The latter figure was arrived at during the account reconciliation with the Ministry of Finance, NNPC and CBN during a public hearing on alleged unremitted $49.8 billion oil revenue organised by the Senate.
But the CBN Governor, while making the new allegation, stated: “All we have said as CBN to which there is no disagreement is that NNPC shipped $67 billion worth of crude. They have repatriated or we have established that $47 billion has come back to the Federation Account. There is a $20 billion that has not come back to us. The burden of proof is on NNPC.
“Secondly, NNPC had explained that 80 per cent of that money yet to be repatriated was on kerosene and fuel subsidy. I have submitted to this committee written evidence of a presidential directive eliminating subsidy since 2009, and NNPC needs to provide its authority for buying kerosene at N150 from the Federation Account and selling at N40 and inflicting that loss on the federation.

But taking up Sanusi on his presentations, the Group Managing Director, NNPC, Andrew Yakubu, expressed surprise over the CBN governor’s outburst. More so, as efforts were being made to reconcile all the differences, even with the assistance of an audit firm of high repute, saying the CBN governor was speaking from a point of ignorance.

It will be recalled, that at a press briefing held by the Minister of Finance and Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala; the Minister of Petroleum Resources, Mrs. Deziani Allison-Madueke; the Governor of Central Bank and heads of DPR and FIRS,the initial figure of $49.8B was reconciled to $10.8B. On the same day, at the Senate hearing the CBN gave a figure of $12B which was corrected by the Coordinating Minister of the Economy to $10.8B.

Regarding the subsidy claim on kerosene, it is important to note that NNPC as the supplier of last resort is the only company supplying this product in Nigeria for the benefit of the citizenry. If kerosene has been deregulated why are the independent marketers not supplying this product in line with what is applicable to diesel (AGO). NNPC owes a duty to Nigerians to ensure that there are adequate products in the country. This mandate has without question been accomplished in the past four years. NNPC deserve to be commended rather than battered, for ensuring adequate supply of kerosene at regulated price of N50.00k.NNPC cannot be held responsible for any differential pricing from non NNPC retailers. This is the basis for NNPC’s claim on kerosene subsidy.
At the end of the session, the Committee’s chairman, however, granted one week’s grace requested by the parties to reconcile all the differences and then bring all the necessary documents to back up their claims.



Emma Ujah, Clara Nwachukwu, Johnbosco Agbakwuru, Joseph Erunke  & Chris Ochayi

No comments:

Post a Comment