Nigeria’s federal government has earmarked N17 billion for the installation of devices to monitor the movement of refined petroleum products across the country.
The fund was approved under the Petroleum Equalization Fund which is set aside for the reimbursement of petroleum marketing companies for any losses suffered.
The government said it is concerned about inconsistent data on subsidy payment, fuel consumption in Nigeria, and how much it has lost to illegal diversion of products.
Ibe Kachikwu, Nigeria's junior petroleum minister, said the installation will last for three years.
Why the tracking devices?
The devices will enable the government to track refined petroleum products’ movement from the point of the LC (Letter of Credit) opening from the vessels that come into Nigeria, up until the point where they are discharged into tanks in Nigeria.
It will also track from the tanks into trucks in Nigeria.
The device will also monitor the trucks until they deliver the products into the storage tanks for the filling stations and they are discharged and sold.
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