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Wednesday, 1 March 2017

Nigerian Senate to probe alleged N5.1tr subsidy fraud in NNPC

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The Senate is set to probe the Nigerian National Petroleum Corporation (NNPC) over claims that it mismanaged about N5.1 trillion it got as subsidy funds between 2006 and 2015.
While raising a point of order, Dino Melaye (APC, Kogi West), drew the attention of the Senate to the refusal of the presidency to probe the nation’s oil corporation, which he said got 51 per cent share of companies approved to import petroleum products into the country.

The N5.1 trillion allegedly mismanaged is about 70 per cent of the N7.298 trillion national budget of 2017 and out of which the government plans to borrow N2.32 trillion. If this amount is recovered, it would help in funding government projects.
The amount of money allegedly mismanaged shows that the nation does not lack revenue to execute projects and programmes that could improve the wellbeing of the citizens. What it lacks is the effective management of the revenue. Also, the planned probe will lend credence to the anti-corruption campaign since the NNPC which is the nation’s cash cow is considered to be a nerve centre of corruption.
According to Melaye, all the oil marketers currently facing trial over alleged subsidy fraud are only responsible for 49 per cent of imported refined products.
He said: “Surprisingly you (the Senate President, Bukola Saraki) are one of those who raised the issue of subsidy in the Seventh Senate. The Federal Government is prosecuting marketers and these marketers only constitute 49 per cent of imported refined products. The NNPC is responsible for the importation of 51 per cent.
“While we are prosecuting the independent marketers whose proceed from subsidy is about N3.83 trillion, NNPC collected a total of N5.1 trillion on subsidy and this has never been investigated and we are busy chasing independent marketers. The time to look at the books of NNPC as regards petroleum subsidy is now.
“We have taken the lead in the fight against corruption in this chamber and I want to say we must do everything within our powers to investigate and bring whoever is found wanting to book.”
Saraki gave nod to the plea by Melaye, who had sought the permission of the chamber to sponsor a motion today. “Thank you Senator Melaye for that radical performance,” Saraki said.
He added: “Melaye, we expect this motion tomorrow (today) and it is a very serious issue. It goes to the core of the fight against corruption and also the issue of NNPC which is a great source of revenue for all of us. We will wait for that motion today.”

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