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NNPC N1.2 trillion Subsidy Claim: Diezani calls on Jonathan to caution Okonjo-Iweala

By on November 22, 2012

 

President Goodluck Jonathan has been alerted by the Nigerian National Petroleum Corporation (NNPC) to a looming acute fuel shortage, should the FG fail to pay the N1.13trn subsidy owed to NNPC.

The Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke led a delegation who reportedly made this known to Jonathan at a recent meeting. The delegation included some top management staff and the group Managing Director, Mr. Andrew Yakubu.

It was learnt that the team told the President that the Minister of Finance, Mrs. Ngozi Okonjo-Iweala, had failed to pay the debt, which has hinged its capacity to continue the importation of fuel on the payment of the debt that had accumulated over the months. The team advised that the president get the Minister of Finance, Mrs. Ngozi Okonjo-Iweala to pay the debt to avoid serious fuel shortage in the country.

The team further informed the president that they fear that very soon fuel might disappear from filling stations across the country if it continues this way.

They also informed the President that they fear that the N971bn subsidy provision in the 2013 budget is seen as hideously insufficient.

According to a source at the NNPC who spoke in confidence, when asked said, “Yes, we have made a presentation to the President. We are waiting for his response because it (payment of the subsidy claim) is very imperative for our capacity to import fuel,”

The team resorted to requesting a meeting with the President when they could not get the Okonjo-Iweala pay the subsidy claim.

The NNPC has remained the sole importer of fuel into the country since the problem with importers began, the oil marketers refused to import fuel since the government refused to pay for some of their claims.

The Jetty and Petroleum Tank Farm owners as well as the oil marketers operating under them have also faulted the N971bn budgeted for the subsidy in the 2013 fiscal year, saying that the amount would not be enough to supply the product over the stipulated period.

In a phone interview, the Executive Secretary, JEPTFON, Mr. Enoch Kenawa, had this to say, “It (N971bn) will not be adequate. What the government is doing is putting Nigerians in double jeopardy. They said they are subsidising fuel, yet people can’t see the products to buy and where they have fuel, people still pay very high to get it.

“The N971bn for fuel subsidy can never be adequate. At 35 million litres of fuel consumption per day, the money can’t be enough.”

He said the N971bn, was too small that the government should have been talking N1.2trn and N1.5trn, with the population and demand ratio.

“If they want to remove, let them remove it (subsidy) instead of what they are doing right now. Based on the demand, the amount that would be reasonable for fuel subsidy should be between N1.2trn and N1.5trn,” Kenawa added.

He said the fuel scarcity experiencing in the country now is because of the N888bn voted for subsidy this year, which was grossly inadequate.

  • Pure

    Thieves. When it was 240bn max befor 2011, why didn’t we die? Rogues! See Diezani thief eye.

  • Nura Mohammed Kamfut

    I don’t subscribe 2 capital punishment bcos death penalty is 2 harsh 4 such a crime. However long term jail sentence should b adopted wiz no option of fine. Though d problem we have in dis country is lack of political will 2 prosecute doz dat are involved in corrupt practices & like d recent indictment of some people in d oil subsidy scam. So d issue is not about d nature or weight of d punishment, but is about enforcement of dat penalty. Even if somebody spend just 1yr in jail & lost all dat he stole thru recovery, whenever he regain his freedom it may not b so easy 4 him 2 indulge in such criminal activity again!

  • Nura Mohammed Kamfut

    Dats d biggest dilemma 4 GEJ, a powerful super minister, Diezani asking d president 2 caution extra super minister, Okonja Iweala. Dis drama is going 2 b quite interesting 2 watch!