Fuel Subsidy:NNPC.

Fuel Subsidy: NNPC Nigeria's state owned Oil Company, Nigerian National Petroleum Corporation {NNPC} has admitted it received a total of n4.95 trillion as fuel subsidy payment between 2006 and 2015. NNPC group managing director, Maikanti Baru disclosed this on Monday when he appeared before senate committee on petroleum (downstream) investigating over n5 trillion subsidy payment to NNPC. Testifying, Baru said while NNPC incurred a total sum of n5.12 trillion under the subsidy regime; it has received n4.95 trillion, leaving an outstanding sum of n170. 6 billion. NNPC finance director, Isiaka Abdulrasaq corroborated the claim of NNPC group managing director. Explaining how the subsidy regime worked, Abdulrasaq said the arrangement was such that NNPC had to pay for the crude oil it lifted at international market price and then sell refined product at government controlled price. He said the differential is what constituted the "subsidy" which government did not at that time make provision for but was transferred to NNPC. He noted that while independent oil marketers were paid in cash, NNPC drew the money directly from proceeds of what it was expected to send into the federation account. Both NNPC officials said the subsidy claims are genuine and duly certified by the regulatory agency, petroleum product pricing regulatory agency{ PPPRA} which issued a subsidy certificate to that effect. The senate panel however asked that NNPC come forward with more documentary evidence to substantiate its claims especially details of the volume of fuel imported into the country during the period of the subsidy regime. The lawmakers also demanded explanation of the allegation that NNPC fraudulently collected subsidy for locally refined product. The minister of state for Petroleum, Kachikwu Ibe who was represented by the permanent secretary, Folashade Yemi-Esan, completely washed off the hands of his ministry from the subsidy regime pointing out that the ministry had delegated the management of it to agencies within its supervision. The minister of finance, Kemi Adeosun, CBN Governor, Godwin Emefiele and the comptroller of customs, Hamid Ali failed to appear before the senate committee. They however sent proxies from their respective offices whom the lawmakers summarily dismissed. Senate has been quite concerned about the way Nigeria has been managing its oil wealth. That concern has grown in the wake of perennial fuel shortages in the country, forcing it to summon its committee on petroleum downstream back from New Year holiday to tackle the matter. Declaring the 2-day public hearing opened, senate president Bukola Saraki who was represented by senate leader, Ahmed lawan, said the probe had become quite crucial to find a lasting solution to the years of fuel crisis and sleaze plaguing the country. He said the national assembly under his watch would not sit back and allow the sleaze in form of illegal payments of subsidy to persist.