En Español

Very usefull links


News links




Dow Jones

Oil price



Views and News





Nigerian to investigate $17 bln subsidies received by state oil firm



Petroleumworld.com 03 02 2017

Nigeria's upper house of parliament will investigate allegations the state oil company illegally inflated funds it collected from an official subsidy scheme to 5.1 trillion naira ($17 billion) between 2006 and 2015, lawmakers said on Wednesday.

The Senate's decision to launch an investigation followed an emergency motion raised by Senator Dino Melaye, who told the Senate there were possible irregularities in subsidies collected by NNPC from the government between 2006 and 2015 on its 51 percent market share of fuel imports.

He did not name the source of the allegations.

NNPC was previously implicated in allegations of fraud in an investigation in 2012 that discovered a $6.8 billion fuel subsidy scam, one of the biggest corruption scandals in Nigeria's history.

It was not immediately clear whether the new Senate investigation would include the 2012 allegations or look into entirely new ones.

A spokesman for NNPC said the company would study any allegations if it is formally notified.

"NNPC has not been formally communicated on the issues. If received, the NNPC will study the alleged issues and respond accordingly," the spokesman said.

Melaye's motion did not specify how much of the 5.1 trillion naira received by NNPC allegedly came from fraudulent activities. It did not explain how the amount of 5.1 trillion naira was calculated.

The motion also alleged that the NNPC sent excess refined products to storage owned by private individuals, which was then sold off illegally by those owners.

In the 2012 investigation, companies including NNPC were found to have declared the same fuel import cargoes multiple times and claimed subsidies for fuel never delivered or sold to neighbouring states.

Subsidies are a murky issue in Nigeria. The government hasn't allocated any money to them since 2016, but effective support remains in place, including giving petrol importers access to dollars at very favourable rates. ($1 = 305.0000 naira)

Reporting by Camillus Eboh; Additional reporting by Libby George in London and Paul Carsten in Abuja; Writing by Alexis Akwagyiram; Editing by Susan Fenton from Reuters.

We invite all our readers to share with us
their views and comments about this article

Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels









Contact: editor@petroleumworld.com,

Editor & Publisher:P.Ohep F. /Producer - Publisher:P.Ohep F./
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2016, Petroleumworld   / Elio Ohep Fitzgerald- All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.