Fuel subsidy: Nigerian parliament makes 6 recommendations to state oil firm

Nigerian parliament has indicted and made recommendations before the State oil company, Nigerian National Petroleum Corporation, NNPC, for illegally paying 216 billion naira ($707.4 million) in fuel subsidies in 2017.

This is the outcome of the Senate Committee on Public Account investigation on all subsidy funds spent by the Nigerian National Petroleum Corporation without recourse to the National Assembly.

Senator Matthew Urhoghinde, Chairman House Committee on Public Accounts made the committees' findings known on Thursday, April 26, 2018, during the plenary.

The upper legislative committee revealed that the House had not approved those payments by the Nigerian National Petroleum Corporation last year, and any further spending on subsidies should be halted with immediate effect.

The recommendations of the Senate committee include:

1. The NNPC should stop the illegal payments without appropriation henceforth;

2. The NNPC through the President should make a formal request to the National Assembly for 2018;

3. There is the need for the Federal Republic to pay all marketers their standing arrears of subsidy owed in 2017;

4. Local refineries should be given maximum attention to enable them to function at full capacity;

5. That Maikanti Baru, the DG of the NNPC should carry out a full audit of the state oil firm; and

6. Direct the committee to recommend appropriate sanctions for officers and personnel who have carried out this illegal payment.

Bukola Saraki, the Senate president in his speech directed the Chairman on Appropriations to follow up to ensure that the government submits the budget for the fuel subsidy.

He said: "We also need to ensure that the Office of the Auditor General is properly funded in the 2018 budget so that they can carry about these jobs properly.”

"Chairman Appropriations should follow up to ensure that the Government submits the budget for the fuel subsidy over the next few days so it can be submitted to us next week. Thank you very much Chairman Public Accounts & thank you all for your contributions.”

NNPC on fuel subsidy payment

The NNPC in a statement issued by its Group Public Affairs Division, Ndu Ughamadu, on Sunday, March 4, 2018, said payment on fuel subsidy cost the state oil firm the sum of N777 million daily.

The statement said the fund was due to the rapid increase of filling stations in communities with international land and coastal borders across the country.

Fuel subsidy: Nigerian parliament makes 6 recommendations to state oil firm

Nigerian parliament has indicted and made recommendations before the State oil company, Nigerian National Petroleum Corporation, NNPC, for illegally paying 216 billion naira ($707.4 million) in fuel subsidies in 2017.

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