Ogun had said that as of 2002, the Nigerian National Petroleum Company Limited (formerly the Nigerian National Petroleum Corporation
He had said, “The House is concerned that as of 2002, the installed capacity of Nigeria’s local refineries stood at 445,000 barrels per day, however, their capacity utilisation began to nosedive and eventually fell completely to zero due to the ineffectiveness and alleged corruption of critical stakeholders in the value chain.”
Ogun explained that due to the decline in the production capacity of the refineries, the NNPCL found it more convenient to export domestic crude in exchange for petroleum products on a trade-by-barter basis, described as Direct Sales Direct Purchase arrangement. The lawmaker pointed out that the component costs in the petroleum products subsidy value chain claimed by the NNPC are “highly over-bloated,” while the transfer pump price per litre used by the NNPC concerning PPMC is under-quoted as N123-N128, instead of N162-N165, “and this fraudulent under-reporting of N37-N39 per litre translates into over N70bn a month or N840bn a year.”
He said, “The House is worried that the consumption rate of PMS is 40 million to 45 million litres per day. However, the NNPC uses 65 million to 100 million litres per day to determine subsidy as discoverable from the NNPC’s monthly reports to the Federal Allocation Committee. “The House is also worried that the subsidy regime has been unscrupulously used by the NNPC and other critical stakeholders to subvert the nation’s crude oil revenue to the tune of over $10bn, with records showing that as of 2021, over $7bn in over 120 million barrels have been so diverted.”All rights reserved.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Subsidy Removal: NNPCL Confirms Petrol Pump Price IncreaseThe Nigerian National Petroleum Company NNPC Limited
Read more »
Nigerian Petroleum Company, NNPCL Confirms Releasing Outrageous Fuel Prices, Calls For ‘Understanding’ From Citizens | Sahara Reporters
Read more »
CELD Innovations Limited receives National Reward Licence from National Lottery Regulatory CommissionIt was an auspicious occasion attended by the Management team of the National Regulatory Commission, led by the Director General of the Commission, Mr
Read more »
Fuel Subsidy Removal In Line With Petroleum Industry Act; No Need For Panic Buying – Nigerian Downstream Agency, NMDPRA | Sahara ReportersThe Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said that Nigerians should not panic over President Bola Tinubu’s announcement of fuel subsidy removal as it is in line with the Petroleum Industry Act (2021). NMDPRA in a statement by its General Manager, Corporate Communications, Kimchi Apollo, stated that the Petroleum Industry Act (2021) provides for total deregulation of the petroleum downstream sector to drive investment and growth.
Read more »
Reps panel: Rehabilitation of Nigeria’s refineries gulped N11.34trn in 10 years | TheCableThe house of representatives ad hoc committee on the state of refineries in Nigeria says the federal government has spent a total sum of N11.34 trillion on the rehabilitation of the country's refineries from 2010 to 2020
Read more »
N11.35tn spent on refineries in 13 years – Reps panelThe House of Representatives Ad Hoc Committee on the State of Refineries in the Country has said the Federal Government spent a total sum of over N11 trillion on rehabilitating refineries from 2010 to date.
Read more »