—-as Reps, Customs query daily subsidy claims by coy
The Nigerian National Petroleum Company Limited (NNPC Ltd) has reacted to allegations of fraud in the fuel subsidy regime, saying it is prepared to open its books for a forensic audit of fuel supply and subsidy management over the past years.
The company, in a statement issued on Sunday by the Group General Manager, Group Public Affairs Division, Malam Garba Muhammad, insisted that daily fuel supply remained 68 million litres.
The spokesman stated that between January and August 2022, the total volume of Premium Motor Spirit (PMS) or petrol imported into the country stood at 16.46 billion litres, representing an average supply of 68 million litres per day.
According to him, the import last year was 22.35 billion litres, which is an average supply of 61 million litres per day.
He clarified: “The average daily evacuation (depot truck out) from January to August 2022 stands at 67 million litres per day as reported by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
“While daily evacuation (depot load outs) records of the NMDPRA carries daily oscillation ranging from as low as four million litres to as high as 100 million litres per day”, Muhammad added.
He maintained that rising crude oil prices and PMS supply costs above PPPRA (now NMDPRA) cap had caused oil marketing companies’ withdrawal from PMS import since the fourth quarter of 2017, thereby turning the company to the major supplier of petrol and on which it has transparently report the monthly PMS cost under-recoveries to the relevant authorities.
The spokesman further stated that the average cost on the international market determined landing cost, citing that in Q2 2022, it rose to 1,283 dollars per metric tonnes and N46 per litre approved marketing and distribution cost.
He pointed out that the combination of these cost elements translates to retail pump price of N462/litre, an average subsidy of N297/litre, and an annual estimate of N6.5 trillion on the assumption of 60 million litres daily PMS supply.
Muhammad assured the company’s readiness to continue to work with Nigerian Ports Authority, NMDPRA, Nigerian Navy, Nigeria Customs Service, NIMASA in all PMS discharge operations as well as smuggling of PMS.
The company’s clarification at the weekend came barely a few days after the House of Reps initiated a probe into subsidy payments approved by the Federal Government, just as the just the government is proposing to spend over N6 trillion on fuel subsidy next year.
It would be recalled that last week, the Controller General of the Nigeria Customs Service (NCS), Col. Hameed Ali (Rtd) faulted the daily fuel consumption figures being claimed by the NNPC Limited to justify the over N6.34 trillion subsidy payment on the product annually.
The House of Representatives had also last week summoned the Auditor General of the Federation, Mr. Okolieaboh Sylvia, to provide documentary evidence on the audit carried out by it on fuel subsidy payment by the NNPC Ltd.
The Federal Government has proposed petrol subsidy of N6.72 trillion for fiscal year 2023.
