•Deduction from source breach of constitution, say lawmakers
Udora Orizu in Abuja
The Office of Accountant General of the Federation (oAGF) yesterday revealed the full details of the N4.194 trillion fuel subsidy paid to oil marketers between January 2017 and June 2022.
A breakdown of the subsidy payments/deductions from the Federation Account computed by the oAGF through the Federation Account Department for the period under review showed that the sum of N126.539 billion was paid from January-December 2017; N691.586 billion was paid from January-December2018; N537.209 billion paid from January-December 2019; N133.625 billion paid from January-December 2020; N1.159 billion paid from January-December 2021, whileN1.545 trillion had been paid between January and June 2022.
The details of the subsidy payment were contained in a 2-page documents submitted by the Director Overseeing the oAGF, Mr. Sylva Okolieaboh to the House of Representatives’ Ad-hoc Committee inaugurated to ‘Ascertain the actual daily consumption of premium motor spirit (PMS) in Nigeria’, chaired by Hon. Abdulkadir Abdullahi.
Abdullahi while scrutinising various documents submitted by stakeholders said: “It is surprising now to see that oil companies are reeling out figures of importation, in fact more than what NNPC imported in 2020. I need some clarifications and if that happened, do they import it without any form of subsidy or what actually happened?”
In his response, the Executive Secretary of Nigeria Extractive Industries Transparency Initiative (NEITI), Mr. Ogbonnaya Orji said: “Why Nigerian National Petroleum Corporation (NNPC) Limited took charge of most of the importations, we are also aware of other partnerships and arrangements they have with IOCs. But I will like the Director Technical Services to speak more on that.”
According to the NEITI delegation, the NNPC as the sole importer of petrol into the country had SWAP and other arrangements with the IOCs with a view to reduce its exposure to the issues.
He explained that NNPC had arrangements with some of the oil marketers as a stop-gap for importation of PMS in 2020, adding that the agency will provide information on those things imported and the vessels and everything.
While expressing concerns over the non-provision of details of the actual volume of litres of premium motor spirit (PMS) distributed by the NNPC that amounted to the N4.194 trillion fuel subsidy deductions from the Federation account, the lawmakers directed the oAGF Director to provide the statement of accounts of the Federation Account alongside the Crude Oil Account statements.
In his remarks, Hon. Uzoma Nkem-Abonta (PDP-Abia) who queried the rationale behind the refusal of the regulatory agencies to provide the details of actual volume of PMS consumed daily in the country, stressed the need for scrutiny of relevant bank documents.
He said: “Could it be the reason why all the Accountant Generals are being sacked or removed, even this acting one for reason of fraud?”. Controversies surrounding payment of subsidy which is the topical issue in Nigeria, we are seeing the amount you paid in subsidy without getting the correspondent volume and you are arguing.
“So the subsidy you paid is meant for, what volume? That is the basis for this investigation. And I ask, could that be the reason why most of the Accountant generals are removed? I’m not the one removing them, they are removing them on issues based on fraud and why are you taking exception, is it a lie that Accountant generals are being removed for fraud?
“Mr. Chairman, I have a motion, you are a signatory to the Federation Account, you are and I move that for us to know the details of what we are doing, that we do not move in the dark light, that for us to know the volume,that he should get us the Crude sale account, he should give us PPMC sales account, he should give us PMS sales account and any of the accounts maintained on subsidy. So that we would be able to look at the account, the volumes and then do this that’s the only way we can, I so move.”
Earlier, Chairman of the Ad-hoc Committee, Hon. Abdullahi noted that the money that NNPC generates was supposed to be paid into the federation account.
According to him, “you know this money is not only for the federal government, it’s for the federal government, it’s for Abia State, it’s for Ningi Local Government, the three tiers of government and other deductions. But before it comes, NNPC will withdraw it, they are brandishing one Supreme Court judgement or whatever.
“You know it’s also contestable because the opinion is that the judgement is not saying that you should grab from the source. No, pay to the government, pay to the Consolidated Revenue Fund (CRF) and then just like the Accountant General is paying to the three tiers of government, that is how it will also pay to you and then you pay the subsidy. That is the way it would be more transparent and I think people will be satisfied that the right thing is being done. But before the thing entered into the Federation Account, they (NNPC) removed it at source. It’s very wrong, it’s unconstitutional, it’s in breach of the constitution.”
