OKONJO-IWEALA AUTHORISED N1.3 TRILLION SUBSIDY PAYMENTS – DIEZANI ALISON

Published:18 Jan, 2012

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More details into the quagmire of oil subsidy removal scandal presently unfolding within the Jonathan administration appears to be making its way into the public arena. This is as the house of representative committee charged with investigating the management of funds related to fuel subsidy began public inquiry into the process of subsidy payments by the Federal Government of Nigeria to select licenced marketers of petrol and kerosene.

Yesterday, the finance minister, Okonjo Iweala honored the invitation of the [adhoc] committee. The committee quizzed her on the finance ministry’s involvement in the oil subsidy process. In her exchanges with the committee, the minister made it clear that all monies made from crude oil through NNPC and partners – are not paid directly into the federal accounts of the nation. The minister stated that the monies for the oil subsidy are withdrawn before it gets to the national accounts – of which she accented by noting that it was unconstitutional for the NNPC to deduct any monies from Nigeria’s crude oil revenues before payment into the national accounts.

However the Petroleum Resources Minister’s appearance before the adhoc committee today discounts the finance minister’s accession as untrue. The Minister pointed blame to the finance minister for the authorization of the N1.3trillion payment for oil subsidy. This she noted repeatedly while adding that the N1.3trillion may have been misleading to the Nigerian public.

The Petroleum Minister admitted under questioning from Hon Lawan Farouk that the N1.3trillion was not only paid for petrol subsidy – that the sum contained arrears for Kerosene and Petrol subsidy dating back to 2008 – thus giving the impression to the Nigerian public that the nation was disbursing disturbing amounts of money for the payment of petrol subsidy. She admitted also that only N250billion out of the N1.3trillion was paid for petrol subsidy.

The Petroleum Minister admitted that she does not know the total volume of petrol consumed in Nigeria. This is as she complained that Nigerian Federal Government was virtually subsidizing the entire ECOWAS community – as illegal transporters of petrol move subsidized petrol out from Nigeria to neighboring ECOWAS countries. But the federal petroleum minister was pinned on an embarrassing note – as it was pointed out to her that the Petroleum Ministry should know the total volume of petrol consume locally – that it would amount to a rudimentary embarrassment should the ministry not have the data.

The Petroleum Minister was not able to provide the total nominal capacity of the refineries in Nigeria. She indicated that information available to her showed that 12% of locally consumed petrol is refined in Nigeria – that Nigeria imports up to 90% of her petrol. She explained that Nigeria’s refining capacity has increased to 60% from 30%.

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It was learnt that operations at the Petroleum Ministry may have lost is focus starting from 2006. As gathered, the NNPC imported 92% of all the petrol used for local consumption in 2006 – at a much reduced cost – while private marketers [importers] were contracted to import about 8% of petrol. Today, it has flipped, virtually the entire locally consumed petrol is imported by independent marketers at an exorbitant cost. The Minister states that the independent marketers were introduced “to add competition”.

“We have done nothing unconstitutional as a ministry” – exclaimed the Petroleum Ministry who spoke in a subdued demeanor as she managed to explain the huge disparity in the amounts of money paid to subsidize petrol in 2006 [when it was recorded that 27million liters of petrol was subsidized] and in 2011 [when it was recorded that 33million liters of petrol was subsidized]. In effect, N200billion in subsidy money was paid in 2006 for 27million liters of petrol while N1.3trillion was paid in 2011 for 33million liters.

In 2008 when the average crude oil price per barrel was $100 about 33million liters of petrol was subsidized at N630billion – similar to today’s market conditions where the average price per barrel of crude oil is $100 – and about 33mllion liters of petrol was subsidized at N1.3trillion.

The Petroleum Minister battled to explain why N245billion made available in the 2011 appropriation bill for payment of fuel subsidy when N1.3trillion was paid in November/December 2011. In her attempt, she admitted that the N245billion in the 2011 budget was for payment of fuel subsidy for two [2] months and not for one year. She indicated that the federal ministry of petroleum had anticipated that the oil subsidy will be removed by March/April 2011 – during the general elections – but it was not removed – so the ministry in tandem with the finance ministry proceeded to release additional payment of N1.3 trillion

  • smith adekunle

    awon ole ogun go strike dem see them shiftn blames,anyway d house would do nothing as usual

  • Nikruks

    Hmmmmm,…..wow!!! I will surely bookmark this page, while i look forward to her confusing herself in months ahead!Hehehehe

  • kamaluddeen kibiya

    Hmmm. We av to thank Almighty God for His blessing… †?? truth has stated coming out…..

  • jide

    I pray and hope these duo (DAM and NOI) go to jail for all these crimes against the nigerian masses.

  • dokun adedeji

    There is no doubt that this is an unfortunate country ruled by a clan of incompetents nevertheless adept at d practice of stealing. What a great pity for d whole country to be suffering for d stupidity of voting in a clueless president!

  • d priest

    Deziani! Deziani!! Deziani!!! You really should resign. I smell incompetence….

  • bipolarishnigerian

    With all your Mobil training you still have coconut for a head allison. is it not obvious now that the whole subsidy thing was a scam gone wrong and they wanted to quickly end it and cover all their tracks? We shall see …..

  • Dapo

    The truth will still come out eventually no matter how long it takes. It’s so unfortunate that many lives would have been lost by that time. However we have to be hopefully and optimistic that we will get there

  • Adu Kehinde

    This is d beginning of revolution in Nigeria.Millions of Niger delta militants in Nigerian army uniforms can not stop us

  • lado

    Fellow Nigerians lest we forget madam okonja it was, who gave Britonswood 16billion dollars of our money in a platter of gold,to her 1.3trillion in naira is nothing so stop complaining!

  • uche

    i hav to say,wat we need most in dis country is not neccessarily men of skill but men of integrity.

  • oluwaseun

    Hmmm,I think we are now seeing the cabals,we now know who to stone when the time comes.I just pray that nigerians will not fizzle out as this struggle continues.

  • niddamugu

    I just hope this is not the usual stage-managed drama that would never have an end…. With all sincerity, I have lost faith with this “democratic” government. There seem to be too much money in the hands of these officials. The average man on the street can tell how many barrels of crude we produce while the govt officials can only tell you the billions and trillions that come in and out. What a shame!!!!!

  • osikema,s.m

    Thank God for all the revelations going on in the country.Wake up Nigerians.

  • aminu hafiz wali

    aha, why am I not surprised. The legislators,civil society,efcc and anybody that cares and can Do something tangible about this and other roberries of the nigerian purse, probe further….there will definately be much more. For their greed knows no bounds.Down with opportunistic theives!

  • chimax

    Looking at those big eye balls of allison madueke, you’ll just deduce that they are not particular for seeing proper records of her Ministry, but those eyes are for every trillions which are moved to her accounts at will. As far as I’m concern, they are bunch of empty heads. Harvard my foot, oxford my Ass.

  • Tayo

    What we need in Nigeria is just men/women of integrity , with zeal for positive growth of the nation.
    Enough of elites with wrong motives.

    Nigerian youths in 2015, lets vote right we have a mandate to do what is right for this nation.

    May God almighty keep up till 2015 and beyond.

    God bless the Federal Republic Of Nigeria.

    It is well with us.

  • patriot

    This na the case of na my mama dey make am, na me they sell am. cry cry my beloved country. well, let us see where this takes us too. Occupy nigeria & other civil organizations should sent representatives there , at these hearings, or make them open to all citizenry, becos we have not heard anything yet. more sinisterous revelations are coming, even from the alleged cabals. Niger for show. open my yansh, i open yours, good. Let them keep on entertaining the poor masses. Suffering & smiling. no be so?

  • Dozie B. Dibiaezue

    What a shame, for a Country. Now can somebody tell me what these ministers actually do in their offices. Tea partying and awarding contracts?

  • Musa Ado

    Hmmmm!!! Both of them are pathological liars. They should be sacked.

  • giddy

    There’s no price for being less than accountable! Me thinks the petroleum minister isn’t ontop of her game. Playing at this level you must have an idea of what will be required of you at a probe. An otherwise intelligent person would be ready. Platitudes don’t count anymore madam.

  • hameed

    Thank God for the 140 fuel price ideas, its open what 70% of Nigerian were not know. But now that all the subsidy and subsidising payment are merely a SCAM, is it better we go back @ a reasonable price. Meanwhile there should be a Law that anybody mismanagement or corruption should not go to jail, but to be killed… So that people will have fear to do any Atrocity…. Thank you, God bless the masses for the protests

  • Nigeria Citizen

    35% affirmative action… Give women a chance… Now they have it and this comes up… The two ministers involved are both women. Two sensitive ministries, finance and petroleum, it’s not what we nigerians bargain for. All they care about is just the money not the job description… Our God no dey sleep, Him don hear Nigerians’ cry… This is just the beginning…

  • Olaniyi Yisa Gbadebo

    Hmmm Nigerians,we are at it again. Is it not shameful to be hearing all these revelations everyday. Why is it that, virtually all our leaders are thieves. If about three or four pen-robbers had earlier been eliminated and their properties confiscated,everybody would have learnt his/her lesson.

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