GTB 737 banner Yudala banner

Diezani, NNPC, PPMC pass buck over kerosene subsidy scam

By News Express on 19/02/2014

Share on facebook Yahoo mail icon Gmail icon

Views: 2,334


Petroleum Minister Diezani Alison-Madueke and the Group Managing Director of the Nigeria National Petroleum Corporation (NNPC) Andrew Yakubu yesterday confirmed the existence of subsidy on kerosene but refused to explain the source of the fund for the subsidy.

Persistent questions by members of the petroleum committee (Downstream) about the actual amount spent on kerosene subsidy from 2011 to 2013, the source of the money and whether there have been budgetary approvals for the subsidies within the three year period did not get away response from the NNPC boss.

The duo appeared during public hearing on expenditure, supply, distribution and subsidy on kerosene by the House of Representatives committee.

The petroleum minister who took less than five minutes of her presentation to the committee before leaving, admitted that the NNPC has been the sole supplier of kerosene since the “confusing presidential directive” banning the subsidy on kerosene in 2009.

She said the NNPC was therefore in a better position to answer questions relating to the subsidy.

However, when the NNPC boss was asked to explain, he initially shifted the responsibility to the Pipeline and Products Marketing Company (PPMC) which he said has been the operational agency for the kerosene importation and supply.

The PPMC Managing Director, Haruna Momoh, said his agency has been importing kerosene through the two channels of vessels and NNPC refineries which are being facilitated by Coastal marketers and Major marketers as well as Independent Petroleum Marketers Association of Nigeria.

Momoh explained that PPMC obtains its larger volume of kerosene supply through the Coastal supplies, and dissociated his agency from the distribution of the product down to the end consumer, since they only distributed to various depots in states.

The PPMC MD also admitted that questions about the budgetary approvals of the subsidy as well as the source of the financing of the subsidy could only be answered by NNPC, since the PPMC is only discharging an operational duty under the parent organisation.

Chairman of the committee Rep Dakuku Peterside (APC, Rivers) turned to the NNPC GMD for the explanations about the subsidy and its source.

The NNPC boss, Yakubu, affirmed the existence of the subsidy, as the product’s landing price is N150, against the official N40.90k being sold to retailers by NNPC.

He said: “Since I am on oath here, I don’t have exact numbers and I don’t want to quote myself out of quote.”

Yakubu said due to the uncertainty of the presidential directive stopping the subsidy, suppliers of the product withdrew, which left the corporation to be the only supplier of the product.

Asked on whether any presidential directive has to be gazetted before effecting the order, Mr Yakubu referred the question to his legal adviser, who explained that it’s only the minister’s directive that is supposed to be gazetted, and acted upon by NNPC, and not that of the president.

But when further asked to reveal on whose authorities NNPC derives order for the continued use of subsidy, he said “we do not pay subsidy, in fact we are victims of subsidy. We are supposed to benefit from kerosene subsidy, but we are not.”

He added that NNPC continued with the subsidy based on “the existence of Petroleum Support Fund (PSF), through revenue that is not realised” and that kerosene was yet to be deregulated.

Yakubu said $8.49bn was spent on both petroleum and kerosene subsidy between 2012-2013, covering only 19 months, adding that NNPC imported 5.1 million litres of kerosene within the period. 

He added that the problems associated with the high selling price of kerosene beyond the official N50 was not unconnected to the diversion of the product to neighbouring countries, pipeline vandalism, sharp practices of middlemen among others.

•Text courtesy Daily Trust. Photo shows Petroleum Minister Alison-Madueke.

Source News Express

Posted 19/02/2014 6:02:29 PM

 

Share on facebook Yahoo mail icon Gmail icon


 

CLASSIFIED ADS

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

 

You may also like...
English Premiership star docked for child sex crimes...

Bayelsa Guber: Dickson, Sylva, 18 others sign peace...

Who says Buhari is a semi-illiterate? He has...

Abductors of Bayelsa Commissioner demand N40 million ransom...

OPEC meets to map out strategies to overcome...

Buhari talks tough, tips Nigerian Army to eradicate...

Gbadamosi sad over death of Newswatch journalist, seeks...

Troops raid kidnappers’ den, rescue victims

Special Task Force will check oil theft —Uduaghan...

The Economist’s inaccurate PR job

FG investigates Nigerian visa granted to wanted terrorist...

Recession looms as Nigeria’s GDP shrinks: Experts

 

Latest News Ruthless Black Stars embarrass Eagles to lift WAFU Cup Restructuring: Youths threaten to shut down South East •Demand release of detained IPOB members Jime delivers Keynote Address at News Express 5th Anniversary Lecture London: 6 injured in suspected acid attack Student sentenced to death for killing policeman Herders, farmers clashes claim 6,500 lives, $14bn in 5 years Trial of Boko Haram suspects to start next month Anambra Guber: We’ll hold INEC responsible for any flaws, says Ohanaeze Bayelsa Govt seeks probe of pirates attack on vessel that killed 3 security escorts NIMASA DG calls for concerted efforts to combat climate change Group demands relocation of IDPs to Bama Ibadan Electric gives reason for Osogbo blackout

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (279,553 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (261,159 views) Shameless Genevieve Nnaji exposes breasts in public (212,053 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (178,361 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (177,124 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (158,974 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (137,166 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (126,983 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (120,690 views) Lagos plane crash: Journalist releases victims’ names (111,419 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (110,525 views) APC cries foul as PDP’s Fayose takes early lead in Ekiti governorship election (102,976 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (28) Business (2,696) Business Verdict (22) Columnists (745) Complaints & Requests (93) Enterprise & Opportunities (178) Entertainment (379) Features (489) Global Business Monitor (178) International (1,547) Interviews (131) Live Commentary (28) Love Matters (73) News (28,677) Opinion (809) Pidgin (8) Politics (3,941) Religion (628) Sports (1,325) Stock Watch (23) AMA & Al Jazeera Global Update

 

UBA mobile app

CBN words on marble advert

 

 

Manchester United vs Everton 4-0 All Goals & Extended Highlights

 

APO Newsbreak logo

 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement



 

 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!