NNPC Excess Supply Of 38 Million Liters/day, Responsible For N6.34tn Subsidy- Customs

Col. Hameed Ali (retd.), the Comptroller-General of Nigeria Customs Service, has alleged that the Nigerian National Petroleum Company Limited (NNPC), formerly Nigerian National Petroleum Corporation, should be held responsible for the N6.34 trillion subsidy annual payment, because it supplies an excess 38 million liters of Premium Motor Spirit (PMS) per day which are not needed.

 

Newsonline reports that the Customs boss, Hammed Ali, stated this on Thursday in his presentation to the House of Representatives Committee on Finance at the continued hearing on the proposed 2023-2025 Medium Term Expenditure Framework and Fiscal Strategy Paper in Abuja.

 

The committee had asked Ali about the likely deficit between N11tn and 12tn in the 2023 budget as proposed in the 2023-2025 MTEF/FSP.

 

Ali argued that the NNPC cannot scientifically prove the 98 million liters per day consumption it was claiming, alleging that the nation’s oil company was supplying an excess of 38 million liters of PMS daily.

 

The Federal Government is proposing a budget with estimates totalling N19.76tn, while the deficit will hover between N11.30tn and N12.41tn in the 2023 fiscal year.

 

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The Minister of Finance, Zainab Ahmed, on Monday, appeared before the committee stating that the government might be unable to provide for treasury-funded capital projects next year, due to dwindling revenue and annual payment of N6.34tn subsidy on petrol.

 

In his reaction to House Committee, Ali said, “I remember that last year we spoke about this. Unfortunately, this year, we are talking about subsidy again. The over N11tn we are going to take as debt, more than half of it is going for subsidy. The issue is not about smuggling of petroleum products. I have always argue this with NNPC.”

 

He further explained, “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 litre per day? That is my problem.”

“The issue of smuggling: if you release 98 million litre 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?” Ali questioned.