At this point, I am just going to repost this article from 2010.....

The article, plus what OP has posted today, further confirms my belief that oil subsidy has to go and go completely. We are paying a big price for cheap fuel, plus thieves are smiling to the bank on top of the matter.

I am a notorious pro-fuel subsidy “activist”. I’ve done this all my life. My reasons are twofold. One, as citizens of a petroleum-rich country, why should Nigerians not enjoy the privilege of paying lower prices for fuel? Two, in a country where over 70 percent are classified as living below the poverty line, I believe fuel subsidy is the only “social security” or “dole” that the masses enjoy. All my arguments for fuel subsidy over the years hang on these two threads. Many readers often agreed with me, while industry experts always disagreed. I’ve been involved in countless arguments over the subsidy issue. I’ve even made enemies in the process. [b]However, my pro-subsidy resolve was badly damaged in December 2009 following the “confidential briefing” I received from an industry player who was pushing for full deregulation of the downstream sector.

In one of the most frightening briefings I have ever received on the economy, the man took me through the sordid details of how a few people milk the treasury in the name of subsidy. “Whenever you hear that the government has spent N500 billion on fuel subsidy, discount it by at least 60 per cent,” he said. “Fuel subsidy is the biggest fraud in the history of Nigeria.” He listed three aspects of the “subsidy fraud”. One, he said a fuel importer could bring in 2000 metric tonnes and claim subsidy for 8,000 metric tonnes. “The mark-up will be shared down the line,” he said. “Even if you are a pastor, you will fall for it. The money is just too much. Imagine the billions of naira available to be shared on a regular basis.

So the regulatory system is compromised and weakened.” Two, he said NNPC always imports more than it has storage facility for. “So the product is stored at private tank farms. If NNPC stores 30 million litres with your farm, you don’t have to account for 10 million litres. There is a process by which you can account for only 5 million litres as long as you know how to share the proceeds of the remaining 5 million litres with those who matter.” I jumped up, transfixed, mouth agape, arms akimbo. “Relax, Simon, relax,” he said, sarcastically. “I enjoy reading your column, but your problem is that you write too much about ideals.

Nigeria is not an ideal country. There are many things that are unheard of all over the world that you will find in Nigeria. What works perfectly in Saudi Arabia and Norway will not work here. Ask yourself: how come our refineries have not been working for ages? Name another country that has four refineries that hardly work. Do you know how many emergency billionaires we have produced through turn-around maintenance contracts in the last 20 years?” He finally listed the third aspect of the fraud. Listen to him: “When they tell you the landing cost of petrol is N100 and the pump price is N65, it means the importer will get subsidy payment of a little over N35 per litre. Now, that is another fraud. There are different grades of PMS (petrol). They do not go for the same price. In the UK, for instance, the price of leaded petrol is different from that of unleaded. In Nigeria, we don’t distinguish between grades.

We pay the same price. So the landing cost of the lowest grade may be N75, but the importer still gets a subsidy payment of about N35 instead of N10 per litre. Do the math. Multiply that by millions of litres everyday and you will understand the fraud. Remember too that the importers get paid for demurrage even if they don’t incur it. I can go on and on.” To cap it all, he said: “Simon, I can tell you authoritatively that our daily PMS consumption is not as high as officially quoted. It is the biggest fraud ever. We keep calculating subsidy on the assumption that we consume 40 million litres a day. Remember to always discount the official figures. It is good for your health.” I had never been that sober in my life. The fear of God gripped me. But I gradually summoned courage and asked: “But can’t government do something about these fraudsters? Can’t they be thrown into jail? Why should Nigerians be punished with higher fuel prices because a few people are abusing the subsidy regime?” He sighed. “What government? In a country where you can actually swear to an affidavit that you are President Barack Obama and, with a N200 bribe, the document will be stamped in court? You think these people are stealing this subsidy money without the involvement of government officials? And you think one government official will turn down N50 million just to sign a document that says you’ve brought in 10,000 metric tonnes of PMS? Are you kidding me, Simon? Are you saying you don’t know that fuel subsidy is the easiest way for government to fund patronage and reward its friends and loyalists?” Sensing that he had subdued me, he declared: “The way forward is total deregulation. Free the market. Let anybody who wants to bring in fuel bring it in at his own cost and charge the market price. The money government is spending on fake subsidy should go somewhere else that will help develop the country. That is what you should be fighting for[/b].

Unfortunately, those of you who keep fighting for the retention of fuel subsidy don’t know that you are playing into the hands of the cabal that milks the treasury of billions and billions of naira every year.” After the encounter, I began to meditate on the way around this scandal. I came up with a two-part series entitled: “Time to Rethink Fuel Subsidy” published in February 2010, when President Umaru Musa Yar’Adua was away in Saudi Arabia receiving medical attention. I reshaped my long-held position on fuel subsidy and argued that it should be paid directly into the salary package of workers. I said there should be an item called “fuel subsidy” on the pay slip. This is like a direct transfer to the citizens. That way, the money would reach the people while fuel pricing would be left to the market. But my “amended” position was weak on many counts: what of Nigerians who don’t have jobs? How would they benefit? What of the private sector? Won’t ghost workers begin to surface to claim fuel subsidy? The major problem with my proposal is that we don’t have a national ID system where every citizen will have a social security number. So any attempt to transfer money directly to Nigerians will be massively abused. Obviously, we—the die-hard fuel subsidy “activists”—are losing the argument. But does that mean the government is winning the argument? The answer is no. To start with, I find it very bemusing the way government is handling the issue. We just woke up one day to learn that the government had written to the National Assembly saying fuel subsidy would be removed from January.

The lawmakers—who are very important in the whole game—heard of it, just like any other Nigerian, when the letter was read on the floor of the National Assembly. That is terrible. I am also not aware that the labour unions were consulted in the first place, even if they would oppose it. And, up till now, I am not aware of an articulated government presentation to Nigerians on the issue. What is the problem? What is the solution? What is the message for Nigerians? How are Nigerians going to be sure that the benefits would reach them at all after decades of failed promises? The impression I’m getting is that we are only discussing the removal of subsidy so that the governors would be able to pay the new minimum wage. If that is the case, government has already missed the road.

Already, there is a wide communication gap between the government and the people on this fuel subsidy issue, which we all know is highly inflammable (no pun intended). As for me, the only condition that can make the removal of subsidy attractive is for us to be cocksure of how we would enjoy the benefits. When Gen. Sani Abacha increased fuel prices in 1994, he set up the Petroleum (Special) Trust Fund (PTF), under the leadership of Gen. Muhammadu Buhari, to spend the savings on infrastructural development. We all saw what PTF did. It remains the best public works programme the country has embarked upon in ages. Anything short of this landmark will be a massive failure. Meanwhile, the debate continues…

Simon Kolawole. Fuel Subsidy and fake subsidy.

I'm not answering any quotes and disagreements on the matter from now on. If you are still blind, I cannot help you see.

MINISTER OF PETROLEUM SHOULD BE ARRESTED BY EFCC.

Which developing country $10billion will be taken out from and it won't go flats on it face.

Nigeria politicians took thieving to another realm...no


Biko my dreams of japa is still very much alive... lemme leave it for them...I speak to existence

Dangote,please do quick and finish your refinery. These civil servants and policticians in NNPC have finished us.We need Dangote and other private refineries to make NNPC moribund the same way MTN and other telcos made NITEL moribund.

buckeyemedia:
That is the problem with you people in Nigeria, still living in colonial & Military mentality, you think it is only one person that will change the system?

The political platforms have no ideology, sorry for you people, which political party is running with the notion of removing petroleum subsidy if they were elected into power?

Which political is running on international electricity tariff rates & revisiting the electricity agreements of Jonathan Goodluck?

But in 2012, y'all said this same subsidy was a scam and never existed.

Segius ogun has been catching my attention. A lawmaker that move a bill for political holders children to school in nigeria but d bill was thrown away by other selfish senators. God bless this man since he has remember d public with the mandate they entrusted on him. Goodone senator ogun

post=114393627:
Each and any politician that have stolen from our National treasury, and make life difficult for Nigerians, since independence, no matter the political party they are, they will never enjoy their stolen goods in good health and peace till the rest of their miserable lives.

For all the suffering people are going through in this nation, any looting and thieving politician, from past to present will not end well.

And this also goes to their supporters, nothing good will come their way in life.

30k go soon end...
Baba don dey change mind....

You are indirectly swearing for yourself sir..

#failurebuhari

Brendaniel:
See the integrity Tinubu sold to Nigerians and he wants Nigerians to reward him for stealing from Nigerians...

Nigerians are silly people to ever think somebody like Buhari.. The blood and Baboon crooner has a bit of sincerity.....

post=114393627:
Each and any politicians that have stolen from our National treasury, and make life difficult for Nigerians, since independence, no matter the political party they are, they will never enjoy their stolen goods in good health and peace till the rest of their miserable lives.

For all the suffering people are going through in this nation, any looting and thieving politician, from past to present will not end well.

And this also goes to their supporters, nothing good will come their way in life.

Amen Buhari, Tinubu supporters will end miserably.

workchopNG:
They steal the ones we have, then go and borrow more even to steal same.

Are we going to continue like this?

Deep

Realists:


Corruption has been institutionalized to the extent that, if you don't indulge in it, you are the odd one out.

This is the one

Deepest

photo!!

KaluwisxPRO:
Several times I’ve said this exact same thing here, the fraud is actually in play with CBN.

They’re the ones who fund this nonsense, oil matketers and dangote. They get USD at N430 to import crude, that is still subsidized.

This means, they do not only get dollar at N200 less, they also get paid petroleum subsidy by NNPC on the little crude they import after selling the excess of their USD gotten from CBN at the black market for N600 plus, that is a N200 profit on every $1, before oil subsidy payment from NNPC.

This has been going on for over 5years.

Legally printing money/profit
What a great hustle

JAMO4REAL1:
which Obi they are all thief's

Do you want the thief that will steal your big tv?
Or do you want the one that will steal big tv, plus tissues, plus soap, plus underwears n socks?

Which kind thief you want in your precious home?

IS TODAY DAY BREAK,

GardenOfGod:
Over $10 Billion Stolen By NNPC, Others In Fuel Subsidy Scam: Reps

_{*Ogun expressed worry that the consumption rate of petrol was 40 million to 45million litres per day}
Peoples Gazette

Lalasticlala
Mynd44

Who is the Petroleum Minister? The Parliament should arrest him.
Sorry oooh, I just realised that Mr. Quorusion is the Minister.

Grand fighter of corrupt is the biggest rogue this country has ever seen.

Alot are not returning to the assembly
Time to open the can of worms

Kill buhari!

How much does it cost to build a brand new refinery? Nigeria is finished.

This news in any sane country would be the reason citizens staged a coup against the present administration rather than waiting for the next administration to bring change.

Check that amount well, this figure is not correct. NNPC stole $100 Billion in fuel subsidy.

Buhari is Nigeria's worst
president ever

DMerciful:
Peter Obi is needed at a time like this. Nigeria is under existential threat that requires positive DISRUPTIVE change from someone like Obi who has shown precedence for his ability to save and properly manage public funds

Oga he cannot do much.. He can't do it alone. Nigeria needs total rejig in orientation and mentality

Who cares.
Nothing can awaken Nigerians out of the cesspit of ethno-religious sentiment.
The news is like bug spray in a tent by the swamp..... pointless.

They are just using this subsidy regime to bleed the nation's money. Some people had fraudulently become billionaire on this subsidy scam. My only fear is that is Tinubu or Atiku manage to win this next year Presidential election, it will even get worse than desired, because the two of them are part of the rot and will want the status quo to remain.
God minister yourself to the hearts of the youths of this nation because they have brain but can't think.
Buhari also disappointed me, for 7 years down the line, he doesn't build any refinery or even repair the moribund ones to operate optimally. What a shame.

I was expecting over $20 billion siphoned. How can you proof that Nigeria consumes about 65 million litres of fuel(PMS) daily? A country where we have less cars on the road between 2015-2021. Statistically, about 60-65% of fuel consumption in the country is in the southern part of the nation. Under GEJ, he used the crude swap model by exchanging crude for PMS but PMB quashed it completely hence we found ourselves here. "IF I AM NOT STEALING AND MY FAMILY AND CRONIES ARE NOT STEALING, THEN 30-35% OF CORRUPTION HAS BEEN TACKLED. PETER OBI" Bitter truth

This is false report, how can just only $10 billion of fuel subsidy be stolen by NNPC? It's more than this. The Reps members are hiding something figures

post=114393627:
Each and any politicians that have stolen from our National treasury, and make life difficult for Nigerians, since independence, no matter the political party they are, they will never enjoy their stolen goods in good health and peace till the rest of their miserable lives.

For all the suffering people are going through in this nation, any looting and thieving politician, from past to present will not end well.

And this also goes to their supporters, nothing good will come their way in life.

For a supporter of the present dispensation, I am quite glad you can see you said saint is actually not a saint after all... Good!!

The problem with Nigerians is that we have extremely short term memory. For those shouting Peter Obi, I hope if he gets elected, he won't be worse than buhari.... People clamoured for buhari like this and he turned out to be a failure.... Peter Obi might be the lesser of three evils or he might even be the devil in disguise, better to watch closely than be sentimental about it.

The Nigerian parliamentary system is filled with rogues and cut throats who are worse than Ali Baba's 40 thieves... Buhari should have been brought to book lon ago when he was away from office for over 3 months but because of the tribal and political party sentiments, that part of the Constitution was ignored.

The Constitution also needs to be redone, this is the number one issue, removing immunity for government officials including the president is going to go a long way to helping Nigeria as a whole get back on track when it comes to governance, reducing the supposed necessity of the government and parliament is also a major part of the path to reform.... Then we have been burning natural gas for over 50 years, natural gas that can support economic growth if properly managed.

The president is the petroleum Minister and so therefore he needs to answer for the stealing and also crimes against humanity... This present government is a fraud.