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You are here:Home>>Strategic Research & Analysis>>SENATE RELEASES LIST OF OIL COMPANIES BENEFITING FROM FUEL SUBSIDY
Sunday, 04 December 2011 02:56

SENATE RELEASES LIST OF OIL COMPANIES BENEFITING FROM FUEL SUBSIDY

Written by Channel Tv
Senate Chamber Senate Chamber

"The chairman of the Senate Joint Committee on Petroleum (Downstream), Appropriation, and Finance investigating the operations of the fuel subsidy scheme in the country, Senator Magnus Abe (PDP, Rivers), who read out the names at the resumed public hearing organized by the committee, said the list included some construction companies that have nothing to do with the petroleum industry." -  Thisday

Nigerian Senate Public Hearing on the management of fuel subsidy funds unveiled revelations by Senate committee members who said many petroleum marketers who import fuel are not qualified to benefit from fuel subsidy funds.

Oil companies mentioned by the committee to have benefitted from fuel subsidy funds are as follows:

Oando Nigeria Plc - N228.506 billion

MRS Ltd. - N224.818 billion

Enak Oil & Gas - N19.684 billion

Conoil - N37.960 billion

Bovas & Co. Nig. Ltd. - N5.685 billion

Obat - N85 billion

Integrated Oil and Gas - N30.777 billion

IPMAN Investment Ltd - N10.9 billion

Africa Petroleum Plc - N104.83 billion

AMP Petro-energy - N11.4 billion

Akor Plc - N24.11 billion

A.Z. Petroleum - N18.13 billion

Capital Oil - N22.42 billion

Dozie Oil and Gas - N3.37 billion

Mobil Oil Plc - N18.60 billion

Matrix Energy - N12.612 billion

Ford Oil - N8.502 billion

North West Petroleum and Gas - N46.27 billion

NIPCO Plc - N23.2 billion

Ontario Oil - N4.9 billion

Origin Oil and Gas - N2.69 billion

Bill and Ocean Energy - N1.77 billion

imageL-R:Adenuga, Tinubu, Dantata, Iheanacho

Speaking at the hearing, Senator Bukola Saraki explained the criteria that qualifies companies as eligible to draw from the funds.

"Importers must be an oil marketing company registered with corporate affairs commission," Senator Saraki said, adding that some companies listed do not meet that criteria.

According to reports from the Senate Joint Committee on the investigation of the fuel subsidy scheme, the total amount paid in 2011 is far above the budgeted amount (N245 billion), rounding up to N1.43 trillion.

That astounding subsidy payment, which was meted out to over 100 marketers, accounts for approximately 40 percent of the N3.65trn paid to petroleum marketers as subsidy for petroleum products in the last six years, according to the Petroleum Product Pricing Regulation Agency (PPPRA).

However, the PPPRA put forward a contradicting figure, saying 2011 subsidy payments amount to N1.348trn.

And according to PPPRA Executive Secretary, Mr. Rejinald Elijah, said some of the figures presented by the committee "did not quite tally."

He explained to panel chairman, Senator Abe, that some documents had been submitted, but not processed and therefore not captured by the books.

The committee accused the PPPRA of breaching protocol in making subsidy payments, saying that 73 of the 100 marketers who cashed in on the fuel subsidy were without depots contrary to guidelines.

The guidelines require that the operators should have a depot with a capacity not less than 5,000 metric tonnes.

Elijah, however, noted that he was not in office when the guidelines were changed, noting that he could not answer the questions since he was under an oath.

The issue of Kerosene subsidy was again brought up at the public hearing. Panel chairman, Senator Magnus Abe, wanted answers as to who ordered the continued payment of subsidy on Kerosene.

Senate committee members had, in previous probe sessions, interrogated the Petroleum Minister Diezani Alison Madueke about the payment of HHK arrears, to the tune of N250 billion, the equivalent of the entire 2011 budget for fuel subsidy.

However, Austin Oniwon, Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, had said the payments had been authorised by late President Umaru Musa Yar'Adua

Mr. Elijah also refuted the matter of N450 billion kerosene subsidy also owed the NNPC by the Federal government.

 

 

 

 

Last modified on Sunday, 04 December 2011 03:10

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