Nigeria: Senate Unmasks Fuel Subsidy Mafia – Adenuga, Otudeko, Others Fingered

Chairman, Joint Committee investigating management of fuel subsidy, Senator Magus Abe yesterday unveiled the names of the prominent Nigerian companies that are benefiting majorly from oil subsidy.

They are Conoil, owned by Chief Micheal Adenuga, Oando Oil, owned by Mr. Wale Tinubu, integrated Oil & Gas owned by former Minister of Interior, retired Capt. Emmanuel Iheanacho, Honeywell, owned by Oba Otudeko, A-Z Petroleum, African Petroleum.

MRS benefited N224.818, billion, Enak Oil & Gas – N19.684 billion, Bovas & Co. Nig. Ltd. – N5.685 billion, and Obat N85 billion, while IPMAN Investment Ltd. – N10.9 billion. A.A. Rano N1.14 billion, A.S.B- N3.16 billion, Arcon Plc- N24.116 billion, African Petroleum- N104.58 billion, Aminu Resources -N2.3 billion, Capital Oil- N22.4 billion.

Avante Guard got N1.14 billion, Avido-N3.64 billion, Boffas and Company -N3.67billion, Brilla Energy-N960.3 million, De Jones Petroleum-N14.86 billion, DownStream Energy – N789.648 million, Dosil Oil and Gas – N3.375 billion, Inco Ray-N1.988 billion, Eternal-N5.574 billion, Folawiyo Energy-N113.32 billion, Frado International-N2.63 billion, First Deepwater Oil-N257.396 million, Heden Petrol-N693 million, Honeywell Petrol-N12.2 billion, Integrated Oil – N30.777billion, AMP-N11.417 billion, Ascon- N5.271 billion, Channel Oil-N1.308 billion, Fort Oil-N8.582 billion.

The Committee revealed that over 100 companies including construction companies participated in the sharing of 1.426 trillion Naira between January and August 2011, a figure that conflicted with that of the Petroleum Product Pricing Regulatory Agency which put it at 1.348 trillion Naira.

The Committee also frowned at the discovery that some of the companies listed were Construction companies that have nothing to do with oil, and observed that the companies were too many and put the credibility of their participatory process to question.

This is just as alleged N450 billion kerosene subsidies owed the Nigerian National Petroleum Corporation (NNPC) by the Federal Government was controverted by the Petroleum Products Pricing Regulatory Agency (PPPRA), which submitted that the claims were not in their books.

In related development, the executive secretary of the Petroleum Products Pricing Regulatory Agency (PPPRA), Mr. Reginald Elijah disclosed that between 2006 and September 2011, whopping N3.655 trillion has been expended on fuel subsidies.

He however differed from the figures – N1.426 trillion submitted by the Nigerian National Petroleum Corporation (NNPC) as subsidies on the products as at August 2011, arguing that the actual figure was N1.348 trillion.

The panel also discovered that a good number of the marketers did not meet spelt out qualifications for benefiting from the subsidies and were in the habit of making false claims, leading to drain in the nation’s oil and gas industry.

According to the panel chairman, marketers were mandated to own tank farms (petrol deports) of not less than 5000 metric tonnes, and should be registered with the Corporate Affairs Commission (CAC) as oil companies.

However, it was discovered that a while only 11 marketers own storage facilities, the rest were “throughput” (sharing depots with filling stations) and some were registered construction companies.

The Group Managing Director of the NNPC, Austin Oniwon told the panel that whereas a locally refined barrel of petrol costs $5, with a subsidy of N11.85 per barrel, the independent marketers were being subsidised with N77 per litre of N138.71, amounting to N12,243 per barrel.

The Joint Committee adjourned for Monday December 12, 2011 for further sitting, and the chairman of the Committee ordered the NNPC-GMD to produce total amount expended on turnaround maintenance from 1999 till date, total dividends accruing to NNPC from the Joint Venture Companies, names of accused marketers, investigations conducted, results and subsequent punishments to defaulters at the next sitting.

Champion Daily

  1. Kunle Reply

    Oju Ole re e

Leave a Reply