Jonathan constitutes another committee on subsidy payment verification

Determined to stoke the raging fire of criticism by most Nigerians against rising payments by the government for fuel subsidy, the Presidency on Thursday constituted a Committee to verify and reconcile the records of such payments.

Though about N245billion was appropriated in the 2011 budget for payment of fuel subsidy, the figure rose by over 2,200 per cent to over N2.6trillion as at December of that year, according to the probe report of the House of Representative Committee on the management of the fuel subsidy.

Similarly, although about N232billion was provided for payment of subsidy arrears in the 2012 budget, Minister of Finance and Coordinating Minister on the Economy, Ngozi Okonjo-Iweala, said recently that about N451billion was disbursed before the close of the first quarter of the year to take care of arrears to oil marketers for 2011 alone. 

Minister of State for Finance, Yerima Ngama, said an additional N50billion was recently released by government for a similar payment, bringing the subsidy bill this year to N501billion so far out of the N888billion provided originally for the purpose in the 2012 budget.

To verify and ascertain subsidy arrears paid to oil marketers, the Federal Ministry of Finance constituted a committee, led by the Group Managing Director, Access Bank Plc, Aigboje Imuokhuede, to look at the payment records. 

But, the president said the constitution of another 15-man committee also headed by Mr. Imuokhuede was in fulfilment of his pledge to Nigerians that no person or organization guilty of fuel subsidy fraud or corruption will escape justice over the fuel subsidy payment scam.

Special Adviser to the President (Media & Publicity), Reuben Abati, listed the terms of reference of the committee to include: to further verify and reconcile all claims made in the report of the Technical Committee on Fuel Subsidy Payments; to properly  identify all cases of overpayment and/or irregular payment; to accurately identify all likely fraudulent cases for criminal investigation, and to review any other pertinent issues that may arise from its work and make appropriate recommendations.

“On receiving the Verification and Reconciliation Committee’s report, President Jonathan will order whatever action he deems necessary to ensure justice and the full recovery of all fuel subsidy funds that may have been illegally paid,” Mr Abati said.

Inaugurating the committee in Abuja, the president said findings of the Technical Committee mandated to conduct a detailed review of all subsidy claims and payments made in 2011 would guide the decision of the government. 

The President gave the committee one week to complete its assignment by Friday, July 13, 2012 as a prelude to immediate action on all identified cases of fraud.

Other members of the new committee include the Director General, Debt Management Office (DMO), Abraham Nwankwo;  Group Executive Director (GED) – Finance & Accountsof the Nigerian National petroleum Corporation (NNPC), Bernard,  and Mrs. Oyinye Ahuchogu  of the Central bank of Nigeria (CBN), and Managing Director, Stanbic/IBTC, Mrs. Sola David-Borha, representing the Banking Community.

Also named in the committee include the National Secretary, Independent Petroleum Marketers Association of Nigeria (IPMAN), Mike Osatuyi, the Executive Secretary, Major Marketers Association of Nigeria (MOMAN), Obafemi Olawore; Accountant-General of the Federation, Jonah Otunla; Director General, Budget Office of the Federation, Bright Okogwu; Executive Secretary, Petroleum Products Pricing Regulatory Agency (PPPRA), Reginald Stanley, and Mrs. Aisha Waziri-Umar as well as Jalal Arabi.

The Attorney-General of the Federation, Mohammed Adoke, the Inspector-General of Police, Mohammed Abubakar, and the Director-General of the State Security Service, Ita Ekpeyong, would also be represented on the Committee.



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  • naubiko

    Greatest prophet to come out of Nigeria has said it ” Na paddy paddy govt we dey oh” Committee everywhere. Why not have these committee rule us instead. We draft the best laws but we cannot implement/ follow them.

  • protester


  • babagida

    Nothing will come out of it, may the Almighty protect and deliver us from these our wicked looters/leaders

  • Ugonna Alozie

    this is another means by which the government is trying to politicize the outcome of the Farouke led committee. If the president is ready to take real action as he had promised Nigerians, the report of the former committee should be looked into, but it is so painful that nobody is talking about subsidy probe rather, all we hear how is Farouk probe. Mr. President i just pray you aren’t there to play the politics they way you met it or they way Nigerians had always thought that politics should be. Please implement the Farouk led committee report and let him face his own case if he is guilty of what he is been accused of, this will do us good as a nation. I submit to this.

  • Enemona

    What want? This shows serious lack of commitment on the part of Jonathan. The Faruk-Lawan-led committee has finisehd and submitted its report, let’s assume that’s tainted. The Technical committee led by Aig also submitted. Yet Jonathan wants them to reverify what they’ve verified ? Verify the verification, you mean?! Jonathan should just get serious, I think there is more to this.

    Let’s see what would be done to Aig or what Aig would do now?

  • chidex

    in fact the problem in Nigerian will never finished until Christ comes. It is a pity that all we hear is that so person has stolen money from the Government, we never hear that these people have gone to jail for their crime, we should no that God is in Heaven and what ever we do will be accounted for, Mr President help the poor masses that suffering in this country, people(masses) will be happy to see that those involved in the crime is been sentenced to prison, it will an example to others but such thing never happens, the issue of godfathers in this country in what that is killing our nation. Lets look into it with clear mind. Thank. Chidex