Nation wasted N5.27tr in petroleum subsidy in six years – Allison-Madueke
By BusinessNews Staff on October 21, 2013

The minister of Petroleum Resources Diezani Allison- Madueke has said the amount of the annual subsidy expended has been reduced by 59.05 per cent to N850 Billion.
The Minister said in a statement at the weekend that the quantity of PMS consumed per day has also reduced by 34.17 percent to 39.66 million litres.

“As at December 2012, the Nation had spent N5.27 trillion on products subsidy since the commencement of the Scheme in 2006. But the comprehensive reform programme put in place under her leadership as the Honourable Minister of Petroleum Resources, yielded outstanding results as the amount of annual subsidy expended was reduced by 59.05 percent to N850 Billion, while the quantity of PMS consumed per day was reduced by 34.17 percent to 39.66 million litres.”

Speaking on her reform programs, she said the initiatives also resulted in investment in the downstream in excess of N50 billion, creating thousands of employments opportunities.
She added that the ministry introduced Double-Three-Two (3-3-2) inspection system to monitor products imports which allows PPPRA to confirm vessel arrival quantities; vessel discharged quantities, and the quantities physically trucked-out of the depots.

She however stressed that the significant achievements made in 2012 by the initiative and in order to ensure reasonable cost savings on operational activities, the inspection system was revised to Two- One-Two (2-1-2) in 2013.

In order to further eliminate the risk of round-tripping which was common before her coming on board as a minister, Madueke said a ban on cargo from storage tanks in West African Coasts, except refineries and blending plants, had been imposed.

The Minister said the first in history products stock-taking exercise carried out January 1 and 16, 2012 was to determine the 2011 end-of-year closing and 2012 opening stock, for the purpose of accurate calculation of national product consumption figures.

She said requirements for import documents such as Letters of Credit, Bill of Lading, Form-M, DPR License, Shore Tank Certificates, etc, have been tightened thereby eliminating risks of Bill of Lading manipulation, and ensuring integrity of products discharge data to justify subsidy payments.

The monthly import performance review meetings to resolve marketers’ complaints through mediation has helped greatly to restore marketers’ confidence in the light of the subsidy removal debate and budget approval uncertainties, thus ensuring seamless product supply to the nation, she said.
To meet government aspiration of achieving 40 billion barrels of oil reserves and 4 million barrels of oil per day production, the Minister said there have been increased exploration activities in the Offshore, Onshore and Inland Basins. A total of 19 exploration wells, 93 developmental wells and 33 walkover wells are being drilled to various degrees of successes under Joint Venture (JV) or Products Sharing Contracts (PSC) arrangements. Intense exploration activities in Anambra, the Chad Basins, Benue, Bida and Sokoto are on-going, she stated.

“Also growing the NPDC operated SPDC divestment and transfer of government equity to NPDC. This divestment in the upstream by SPDC/Total and Agip created an opportunity for participation by the Nigerian upstream players. These are not the hallmark of a lazy Minister or one who does not have the grasp of her Ministry. She needs the support of all well meaning Nigerians to do more.” He stressed.

Linked from: http://businessnews.com.ng/2013/10/21/nation-wasted-n5-27tr-petroleum-subsidy-six-years-allison-madueke/?wt=2

okokobioko

eduson33: okokobioko

Heard that exclamation last when i was still a kid living in a countryside dominated by Igbos!

ya thats why i dramatically repeated it for thou again because your story is so ointmented that i can superstilminially decode.
elucidate your expression before you dispense.

1MCN:
Heard that exclamation last when i was still a kid living in a countryside dominated by Igbos!

eduson33: okokobioko

aya owe

Plus or minus the ones she and Oga Jo stole?

There is/was no subsidy.
I repeat
There is/was no subsidy
Crude thieves.

ballabriggs: Plus or minus the ones she and Oga Jo stole?

Ok, now let's check. Before her appointment in 2007 as Transport Minister by the late Umaru Musa Yar'Adua, she was a staff with SPDC. 2007 to 2013 is 13 years. She was made Petroleum Minister by Jonathan upon assumption of office as President. This was barely 3years ago. Are we saying she stole all that money as she got there. And, if she's actually complicit, do you think she'll come public with this info? While not attempting to hold brief for her, I think you're judging purely from hate here and not quite rationally.

I am confused but it was under GEJ that fuel importers ballooned from just under 10 to about 100. THe more you look the less you see.

bloggernaija: There is/was no subsidy.
I repeat
There is/was no subsidy
Crude thieves.

Your argument is germane, and this is the reason why I think it should be fully and officially removed so that people are not double charged. But, we both know that the pain it'll inflict on our people would be horrendous since we're not refining our own oil. But, then, painfully enough those who make enterprise out of the status quo will never refine or let us refine our oil as long as the subsidy remains.

blacksta: I am confused but it was under GEJ that fuel importers ballooned from just under 10 to about 100. THe more you look the less you see.

Trust me, that assertion isn't altogether true. Try and verify the official list because those who would want us believe this are the very ones who are culpable of the corruption in that sector.

Although the number at some point arrowed so high, and that was because people saw that open channel to siphon our collective wealth recklessly. And that is exactly what, I think, this gov't is trying to plug.