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Nigerian Governors accuses NNPC of increasing fuel subsidy payments by 50%, orders probe from 2015

Chairman, Nigeria Governors’ Forum (NGF)/ Zamfara State Governor, Abdul''aziz Abubakar Yari; Borno State Governor, Kashim Shettima; Governor Mohammed Abubakar of Bauchi State; and Sokoto State Governor, Aminu Waziri Tambuwa, during the NGF’s meeting at the State House Conference Centre in Abuja yesterday

On Wednesday night after a meeting with state governors presided over by Vice President Yemi Osinbajo at the Presidential Villa in Abuja, the governors revealed that the Nigeria National Petroleum Corporation (NNPC) inflated by almost 50% the figures on the consumption of petrol and consequently the amount paid for subsidy.

According to the governors, NNPC doubled the figure of daily consumption from 33 or 35million litres per day to 60million litres. The governors further demanded a probe of oil subsidy payments from 2015 till date.

Governor Abdulaziz Yari of Zamfara State, the Chairman of the Nigeria Governors Forum, while speaking to state house correspondents, said.

“On the issue of cost recovery otherwise called subsidy, the issue of subsidy resurfaced again after the efforts of Mr. President. Before now the oil was $40 per barrel and now it is about $78 a barrel, so therefore they are depending largely on importation,”

“Therefore, the cost is higher than what they are selling at the filling station and they need more money. When there was no cost recovery, the NNPC clearly gave us the number of 33 and 35 million liters per day as the consumption of Nigeria.

“But now that with the new regime of cost recovery, NNPC is claiming daily consumption of 60 and 65 million liters per day? Which we rejected and said no.

“So many of our international partners are saying that even if we are feeding Nigeria, Cameroon, Ghana and Niger, we cannot consume more than 35 million liters per day. So we are wondering where the 60 million liters is coming from. We are trying to sort that one out, that one is not yet resolved.

“At the same time, NNPC is making payment on behalf of Nigeria on Cash-call contribution and also the NNPC is making payment of cash call arrears of Nigeria’s contribution. Our main concern is that in 2015, they said about $16.8 billion which is outstanding was not paid by the last administration and they negotiated it down to $5.1 billion according to them.

“What we said specifically is that they should bring to us how much they have paid from 2015 to date and what is outstanding. And we directed they stop payment until the claims are proven and then we can give further directives,” Mr Yari, said

Mr. Yari also stated that since the NNPC indicated “porous borders” as the reason for the increment in petrol consumption, they have directed all petrol stations less than 10km to the nation’s borders be immediately shut by the Department of Petroleum Resources (DPR) until they are recertified.

“We are now taking a very hard decision, that because NNPC said the reason why they were lifting 60 million per day is because our borders are porous, so we have taken the decision that any filling station that is 10 kilometers on the border side should be closed by DPR. And, then we will do recertification according to the needs,” he said.

He described as outrageous the N800 billion being expended by the NNPC as subsidy.

“Our problem is the volume, the quantity of consumption which is not acceptable.

“Working with the governors so many decisions were taken but by next month, we are going to adopt that position either for the governors to take responsibility for the subsidy in their states based on the consumption or we look at other ways.

“For instance, if you say we paid N800 billion subsidy, you will ask who are we paying the subsidy to? And if you look at infrastructure development and capital programme of the federal government, it is about N1.1 trillion, almost 70 per cent of what you are spending on developing the economy.

“If there is no infrastructure development then you cannot talk about development of the economy. N800 billion is a huge amount that we must look at it, who is benefiting from it.

“So we are coming up with a strategy, we are going to meet in the month of May and June. By next meeting, we will definitely come up with a position of the government at both level of volume of what is being brought into the country and what the state and federal government collaborate to check,’’ he said.

The Governors also directed the Minister of Finance, Mrs. Kemi Adeosun, to collaborate with the DPR and the NNPC to put tracking devices on every truck in order to monitor fuel discharge.

“Because, we are suspicious of the number, we cannot confirm the difference from 30 million liters per day consumption to 60 and 65 million liter per day consumption. So these are our decisions on the NNPC,” he said.

Governors and top government officials who were at the meeting includes; Udom Emmanuel of Akwa Ibom, Godwin Obaseki of Edo State, Seriake Dickson of Bayelsa State, Nasir El-Rufai of Kaduna State, Atiku Bagudu of Kebbi State, Finance Minister Kemi Adeosun, Budget and National Planning Minister Udo Udoma and others.

Minister of Finance, Mrs. Kemi Adeosun

Minister of Finance, Mrs. Kemi Adeosun

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