Nigeria spends N11trn for subsidy claims in six years – Senate 

79 total views, 2 views today

Nigeria has spent over N11 trillion as payment for outstanding fuel subsidy claims in the last six years, Chairman, Senate Committee on Petroleum Downstream, Kabir Marafa (APC, Zamfara) has disclosed.
This comes as the upper legislative chamber on Thursday approved the payment of N129 billion as subsidy arrears claims to 67 petroleum marketers.
The approval followed the adoption of the report of the Senate Committee on Petroleum Downstream on the Promissory Note Programme and a Bond Issuance for Oil Marketers Outstanding Claims.
This is even as the Senate has adjourned till June 6 for its valedictory session.
Presenting his report, Marafa said this has brought closure to the issue of subsidy arrears claims by oil marketing companies.
Some of the oil marketers are: AA Rano, Ascon, Aiteo, Total, MRS Oil & Gas Limited, Sahara Energy, Oando PLC, A-Z Petroleum, Masters Energy, Northwest Petroleum, Fresh Enery, Forte Oil, Integrated Oil among others.
It would be recalled the upper legislative chamber had on Tuesday approved the sum of N69 billion as oil subsidy claim for Premuim Motor Spirit for 19 oil marketers.
Presenting his report on Thursday, Marafa observed that there were differences in submissions made by the Federal Ministry of Finance, Petroleum Products Pricing Regulatory Agency (PPPRA) and oil marketers.
The report pointed out that all the subsidy arrears claims were based on three inter-related elements: subsidy, forex differentials and bank interests on unpaid claims.
“That the recent request computation is based on one of the already identified elements (forex differential).
“That due to scarcity of Forex within the period, Oil Marketing Companies were allowed to source Forex outside CBN rate to enable them meet the country’s petroleum products demand.
“That NNPC Retail get their petroleum product allocation directly from PPPMC at already subsidized rate and so … Read More...