$3.5bn Subsidy: Senate Hearing On NNPC Begins [LIVE UPDATES]
The Nigerian Senate, on Thursday, began its probe into the alleged illegal payment of $3.5 billion as subsidy for petroleum products by the Nigeria National Petroleum Corporation (NNPC).
The Senate had constituted a panel to probe the alleged illegal subsidy payments following a motion moved on the floor of the Senate by Minority Leader, Biodun Olujimi, who had described “the subsidy recovery fund” allegedly managed by two people. The upper legislative chamber had consequently set a up an ad hoc committee to probe the $3.5 billion “subsidy recovery fund”.
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THE WHISTLER reports that members of the Senate Ad Hoc Committee are going through the introduction at the hearing that began at about 2:40 p.m.
– ‘We Don’t Have Subsidy Account: Finance Ministry –
3:00 pm: The Senate asked to know the procedure of the spending the alleged subsidy funds, but the Permanent Secretary in the Ministry of Finance, Mahmud Isa, who represented the Minister, hinted that they wrote a letter to the Committee, stating that the Ministry does not operate or keep any subsidy account. When asked if the practice was normal,
– NNPC Doesn’t Operate Any $3.5 billion Subsidy Account: Dr Maikanti Baru-
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3:27 pm: NNPC GMD, Kanti Baru, also stated that the Corporation does not operate any $3.5bn petrol subsidy funds. He added that there was no provision for the funds since 2016. Baru, however, said that the Corporation is utilising the $1.05bn set aside to augment price differences.
He added that the NNPC has 1.9 Billion liters Of petrol In stock and plans additional stock for Christmas.
The NNPC GMD said the Corporation plans to store up the quantity of petrol that would last for 49 days from Christmas and through the election period.
The GMD said that he does not have any idea what Nigeria consumes on daily basis, but that the NNPC desires that the oil market is opened for oil marketers to come back in the system, adding that the monopoly by the NNPC is not good for the nation and for the Corporation.
