Energy

Customs boss faults NNPC on fuel consumption, says subsidy fraudulent

The Comptroller-General of Nigeria Customs Service (NCS), Hameed Ali, has faulted the Nigerian National Petroleum Company (NNPC) Limited’s figure on daily fuel consumption in the country.

Ali said more than 38 million litres of fuel are diverted daily according to the NNPC submission.

He said it was unbelievable the Nigerian oil company which put Nigeria’s daily fuel consumption at 60 million litres claimed to have released 98 million litres into the market.

Ali said this on Thursday at the interactive session with the House of Representatives Committee on Finance on the 2023-2025 Medium Term Expenditure Frame and Fiscal Strategy Paper.

“Is not about smuggling? How many trucks will carry 38 million litres every day? Which road are they following and where are they carrying this thing to?” he inquired.

The Deputy Chairman of the committee, who presided over the session, Saidu Abdullahi, said about 500 trucks(with 70,000 litre-capacity each) are needed to ferry the 38 million excess litres.

The Customs boss, while speaking on the proposed subsidy payment for 2022 and the over N11 trillion deficit expected said: “I remember that last year, we spoke about this. Unfortunately, this year, we are talking about subsidy again. The over N11 trillion we are going to take as debt, more than half of it is going for subsidy.

READ ALSO: NNPC: Churches, mosques, communities involve in oil theft

“The issue is not about smuggling of petroleum products. I have always argued this with the  NNPC.

“If we are consuming 60 million litres of PMS per day by their own computation, why would you allow the release of 98 million litres per day? If you know this is our consumption, why would you allow that release?

“Scientifically, you cannot tell me that if I fill my tank today, tomorrow, I will fill the same tank with the same quantity of fuel.

“If I am operating a fuel station today and I go to Minna depot, lift petrol and take it to Kaduna, I may get to Kaduna in the evening and offload that fuel. There is no way I would have sold off that petrol immediately to warrant another load.

“So, how did you get to 60 million litres per day? That is my question. The issue of smuggling, if you release 98 million litres in actual and 60 million litres is used, the balance should be 38 million litres. How many trucks will carry 38 million litres every day? Which road are they following and where are they carrying this thing to?”

The Deputy Chairman of the committee, who described subsidy payment as scam, said it constitutes a drain on the economy.

Abdullahi said: “If there is anything that has constituted a nuisance and has become a drain on the economy today, it is this issue of subsidy.

“As a government, we have not done well. We owe it to the people of this country to do what is right for this country. We are talking about over N6 trillion going for subsidy payment that almost doesn’t exist.

“You talk about 38 million litres which amount to about 500 trucks leaving our shores on daily basis. We have an investment in NIGCOMSAT. Has there been any time that our satellite captured images of trucks leaving our shore?

“I think it is very clear that what is required is the political will to put a halt to this.

“Considering the importance of the inter-dependence of these two arms of government, I think we should work together to put a halt to this. Posterity will be kind to us if we are able to proffer a lasting solution to this issue of subsidy because it is not sustainable.

“We talk about insecurity. This is the real course of it. The money that is supposed to go into the provision of social amenities is going into private pockets. I think there is a need to work together to put a halt to this.”

The Star

Aminu Adamu Naganye

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