Tambuwal asks NNPC to disclose source of funding of kerosene subsidy

The House of Reps is investigating the controversial kerosene subsidy

The Speaker of the House of Representatives, Aminu Tambuwal, on Tuesday in Abuja, asked the Nigeria National Petroleum Corporation, NNPC, to disclose the source of funding of kerosene subsidy.

Mr. Tambuwal, who was represented by the Deputy Speaker, Emeka Ihedioha, made the demand at an investigative hearing on the supply, subsidy and distribution of kerosene in the country.

The hearing was organised by the House of Representatives Committee on Petroleum (Downstream).

He said that since there was no budgetary provision for subsidy on kerosene, Nigerians would want to know the source of funding of the subsidy.

The Speaker noted that in spite of the N1 trillion spent in the past four years to subsidise kerosene, the product had continued to elude Nigerians.

“It is important to note that the country has spent at least N1 trillion over the past four years to subsidise kerosene, yet the product is neither available nor is it sold at the official NNPC pump price.

“When kerosene is available at all, it is sold at such exorbitant rates that Nigerians have to pay huge sums to get the product.”

Mr. Tambuwal said that neither the NNPC nor its agencies had been able to disclose the consumption volume of kerosene per annum.

“Transparency and accountability are things that we should, by now, take for granted in 21st Century democratic Nigeria.

“This mystery surrounding kerosene subsidy warrants a full scale investigation to unravel the truth.

“Nigerians need to know to what extent kerosene subsidy is actually serving their interest,” he said.

He maintained that the aim of the hearing was to boost the confidence of Nigerians in the economy.

“This investigation is expected to boost the confidence of the people on how the economy is being managed while protecting the nation from unavoidable losses,” he said.

The speaker said that the hearing was not to witch hunt but to discharge the constitutional duty bestowed on the House.

“Let me reiterate that this is a constitutional duty and not a witch hunting exercise.”

(NAN)


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  • Efe1

    Nigeria is in a state of fraud.

  • omo oba

    Thieves

    • redeem

      From Stopping Kerosene Subsidies.

      **Sanusi did not appear to understand his facts about the Kerosene subsidies right.
      **The then Minister of Petroleum Resources, Dr Rilwan Lukman refused to implement the subsidies because of it effect on people.
      **House of Representatives resolution of July 2011 which backed the continuation of subsiding kerosene.
      **Justice Bello of the Federal High Court, Abuja ordered Govt not to remove the subsidy on kerosene.
      **Sanusi is aware that NNPC is authorized by law to spend these funds for Subsidies, but why lying against NNPC?

      The exchange between the Governor of Central Bank of Nigeria (CBN), Mr Sanusi Lamido Sanusi, and the Nigerian National Petroleum Corporation (NNPC) over oil funds has generated interest in the polity. This is hardly surprising since the bulk of the money that sustains the nation comes from oil.

      • Ide4u

        Show us the law authorizing NNPC to spend funds on Kerosine Subsidy. How come we never had this fraud under Prof. Tam-David West?

        • redeem

          then why did u Nigerians send him to jail during the era of IBB? Is it because he does not like Jonathan–Tambuwalé is not thinking right-all he has to do is to go for a littler research–then he would realize that–*House of Representatives resolution of July 2011 which backed the continuation of subsiding kerosene.**Justice Bello of the Federal High Court, Abuja ordered Govt not to remove the subsidy on kerosene.
          **Sanusi is aware that NNPC is authorized by law to spend these funds for Subsidies, but why lying against NNPC?

      • Mark Nsikan

        ur mumuness is annoyin…first of all…subsidy on kerosene=50 naira per litre,2..subsidy was cancelled on kerosene by yaradua,3 ..subsidy continues witout “appropriation”..4..wia did nnpc get d funding tu subsidies kerosene?..5..how come we buy kero at 150/140 when theres a soposd subsidy?…6..how come its when sanusi made noise dat some money was missin dat nnpc came out with “kerosene subsidy” bruhaha?…..in other words,there was no subsidy,simple!!….some ppl wia choopin dis money,sombdy signd dis money,somebdy paid dis money……

  • redeem

    Sanusi triggered the exchange when he wrote President Goodluck Jonathan to allege that the NNPC failed to remit some $49.8 billion into the Federation Account. The NNPC took him up, saying he got his facts wrong. A subsequent reconciliation meeting involving the Federal Ministry of Finance scaled down the money to $12billion and then $10.8 billion part of which was said to have been spent to service kerosene and petrol subsidy.

    The impression thus created was that the issue would be ultimately resolved. But the CBN Governor raised fresh dust at a public hearing conducted by the Senate Committee on Finance when he insisted that out of $67 billion crude lifted, only $47 billion has been remitted, leaving a balance of $20 billion. Sanusi did not stop there. He alleged that the money illegally and unconstitutionally withheld, diverted or spent by the NNPC is in excess of $10.8 billion.

    The CBN Governor went further to say that whereas the NNPC stated that a major component of the $10.8 billion was spent on kerosene and petrol subsidy, he had evidence of a presidential directive stopping kerosene subsidy and therefore declared that the subsidy (on kerosene) was illegal and that whatever had been spent should be refunded to the Federation Account.

    • Ide4u

      Go back to Sanusi’s presentation and try to understand it. Why don’t you arrange your figures as arranged by Sanusi in his presentation to the House of Representatives? Stop juggling figures and confusing people.Benard Otti, GMD Accounts, NNPC said the $10.8B was spent on Kerosine subsidy that was abolished by a presidential directive since 2009. The reconciliations that you could not get right are as follows:
      $67 Billion of Crude lifted and the following remitted to the Federation Account
      A) $14B as Equity Crude
      B) $15B as payment to FIRS
      C) $2B as Royalty to DPR
      D) $16B out of $28B taken as Domestic Crude paid in Naira.
      This is where the $12B came in. But if you deduct all the remittances from the $67B as claimed by NNPC there is an outstanding balance of $20B.

    • AAA

      @ Redeem are u NNPC spokesman or an amebo ? This subsidies of kerosine is not appropriated in the budget for the past 3 years, so this is a clear fraud. And by May 30th the next APC govt would prosecute all the thieves involved.