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Shocking: NNPC Cannot Justify Over N6.34 trln Claims On Fuel Subsidy, 98 mln Litres Consumption – CG Customs

By Our Reporter

 

….Alleges the nation’s oil company supplies an excess of 38 million litres of PMS daily

The Comptroller-General of Nigeria Customs Service, Hameed Ali, has claimed that the Nigerian National Petroleum Company Limited (NNPCL) cannot justify the volume of Premium Motor Spirit (PMS), also known as petrol being consumed in the country daily to warrant the over N6.34 trillion subsidy payment on the commodity annually.

While speaking at the House of Representatives in Abuja on Thursday, Ali said that the NNPC cannot scientifically prove the 98 million litres/day
consumption it was claiming, alleging that the nation’s oil company was supplying an excess of 38 million litres of PMS daily.

The House of Representatives Committee on Finance was engaging government agencies and ministries on the proposed 2023-2025 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).

The Committee had asked Ali for his comments on the implications of the proposed deficit of between N11 trillion and N12 trillion in the 2023 budget as proposed in the 2023-2025 MTEF/FSP.

The NCS boss faulted the NNPC on its subsidy claims, saying, “I remember that last year we spoke about this. Unfortunately, this year, we are talking about subsidy again. The over N11 trillion we are going to take as debt, more than half of it is going for subsidy. The issue is not about smuggling of petroleum products. I have always argued this with NNPC.

“If we are consuming 60 million litres of PMS per day, by their own computation, why would you allow the release of 98 million litres per day? If you know this is our consumption, why would you allow that release?

“Scientifically, you cannot tell me that if I fill my tank today, tomorrow, I will fill the same tank with the same quantity of fuel. If I am operating a fuel station today and I go to Minna depot, lift petrol and take it to Kaduna, I may get to Kaduna in the evening and offload that fuel. There is no way I would have sold off that petrol immediately to warrant another load. So, how did you get to 60 million litres per day? That is my problem.

“The issue of smuggling: if you release 98 million litres in actual and 60 million litres is used, the balance should be 38 million litres. How many trucks will carry 38 million litres every day? Which road are they following and where are they carrying this thing to?”

The Committee’s Deputy Chairman, Saidu Abdullahi, who presided over the hearing, decried that funds under the subsidy scheme, which should have been used to finance capital projects, were being diverted into private pockets.

Meanwhile, the Customs CG told the Committee that the Service would meet its revenue projection of N2.272tn for 2022, N2.873tn for 2023, N3.540tn for 2024 and N3.752tn for 2025.

The lawmakers queried the sum of N6.7 billion spent on legal matters out of N7.5 billion approved in the 2021 Appropriation Act, with another N9.2 billion proposed in the 2023 budget.

Ali, however, explained that the NCS wrote to the Presidency seeking virement of N4 billion to cater for pending legal debts, adding that inadequate funds might cause the Service to pay as much as N20 billion for a suit of N3 billion for default.

The lawmakers also tasked the CG of the NCS with ensuring remittances of 80 per cent of the operating surplus to the government coffers as prescribed by the Finance Act, adding that the Customs should propose amendments to the extant law with a view to addressing whatever concerns might arise.

 

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