Govs demand probe of N1.15trn fuel subsidy claims

Written by Daily Trust Wednesday, 10 March 2010

State governors yesterday said the N1.15 trillion claimed as subsidy to petroleum products marketers by the Nigeria National Petroleum Corporation (NNPC) should be probed before any further subsidy payment is made.

Rising from the National Economic Council (NEC) meeting chaired by Acting President Goodluck Jonathan at the Presidential Villa in Abuja, the governors said the payment of subsidy would deplete the amount accruable to them from the Federation Account.

Briefing newsmen in company of Finance Minister Mansur Muhtar and the Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi, Governors Emmanuel Uduaghan of Delta State, Gbenga Daniel of Ogun State said the NEC has directed that the subsidy claim be audited before any further payment is made.

The controversial subsidy claim covers payment for the supply of petroleum products across the country between N2005 and 2010.

Governor Uduaghan said the states are worried about the Joint Venture Cash Call, in which money is deducted directly by the NNPC to their joint venture funds.

He said last year, for 4-5months NNPC did not make any contribution to the Federation Account “because money it was making was directly paid into the joint venture account and that really affects us.”

“All of that we are going to audit because all the subsidy end up in the hands of the very few. There is nowhere in the country today where fuel is sold for N65 per litre. In the Delta areas, fuel is sold for up to N150, so who is enjoying the subsidy? A few individuals and we are saying that this should stop,” Uduaghan said.

Governor Daniel said the governors restated their support for the deregulation of the downstream oil sector, saying the NEC also discussed the nation’s new tax policy, the 50th anniversary celebration of Nigeria, and Central Bank of Nigeria (CBN) initiatives on supporting the real sector of the economy.