Senate names fuel subsidy beneficiaries

The Senate yesterday released names of the beneficiaries of fuel subsidy amounting to a grand total of N3.655 trillion for five years (2006 to 2011).

The upper legislative chamber said fuel subsidy has guzzled N1.426 trillion between January and August this year alone.
Chairman, Senate Ad-hoc Committee probing the management of fuel subsidy regime in the country, Senator Magnus Abe, read the names of companies benefitting from fuel subsidy at the resumed investigation by the committee in Abuja .

Senate President, Senator David Mark, had lamented the existence of those he referred to as “oil industry mafia” and charged the investigative panel to unearth those behind oil deals.

Executive Secretary, Petroleum Products Pricing Regulatory Agency (PPPRA), Mr. Reginald Elijah Stanley, however, disagreed with the N1.426 trillion for 2011.

The PPPRA boss said that some of the figures reeled out by Abe did not quite add up.
According to him, “some of the figures read did not tally with the actual figures.”

Stanley gave the figure of N1.348 trillion as the amount spent on fuel subsidy between January and August this year.
He also gave a grand total of N3.665 trillion as the amount spent on fuel subsidy between 2006 and August 2011.

But the committee wanted to know why fuel subsidy which used to be about N500 million in one year suddenly jumped to N1. 426 trillion within the space of less than one year.

Abe also wanted to know what a construction company has to do with importation of fuel.

He, however, did not mention the construction company listed among the beneficiaries, in spite of the preseure piled on him by reporters.
A member of the committee, Senator Bukola Saraki, noted that part of the guidelines for licence as oil marketer specifies that applicants must own a tank farm and the company registered at the Corporate Affairs Commission (CAC).

The committee said that information available to it is that some importers who do not own tank farms use names of oil majors to receive subsidy as marketers.

Stanley said that they received the complaint and referred the matter to security agencies for proper investigation.

Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mr. Austin Oniwon, told the committee that the NNPC collects subsidy for locally refined products but not as much as the amount paid for imported products.
On alleged massive round tripping by marketers, the NNPC boss said that he had not caught anybody engaged in round tripping. He said he would not “want to speculate on it.”

Oniwon also said that N71.2 million was spent on turnaround maintenance of Kaduna Refinery.
He said that they have been given 24 months to resuscitate the three refineries in the country.

Asked what the country is losing as a result of the non- functioning of the refineries, Oniwon referred to the salary paid to staff at the refineries.
The NNPC GMD also failed to give the committee the quantity of products that are produced locally since the refineries were shut down.

“I will get back to you”, he retorted.
The committee mandated him to furnish it with details of the quantity of products produced locally.

Abe said that former President Umaru Yar’Adua abolished kerosene subsidy and wondered why it was re-introduced.
The PPPRA boss said that it was re-introduced by the board of the agency, but failed to furnish the committee with necessary documents to support his claim.

He failed to justify why N200 billion paid as arrears was not recorded in  the books of the agency.   
Companies named by the Senate and the amount of money they received this year alone included; Oando Nigeria Plc, N228.506billion; Integrated Oil and Gas Plc, N30billion; MRS, 224.818 billion; A.A. Rano, N1.14 billion; A-Z Petroleum, N18.61 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; Con Oil, N37.96 billion; Avante Guard, N1.14 billion; Avido, N3.64 billion; Boffas and Company, N3.67 billion; and Brilla Energy, N960.3 million.

Others also listed are: D. 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; AMP, N11.417 billion; Ascon, N5.271 billion; Channel Oil, N1.308 billion; Fort Oil, N8.582 billion; Enak Oil & Gas, N19.684 billion; Bovas & Co. Nig Ltd, N5.685billion; and Obat Oil N85billion.

Abe also named AP, N104.5billion; IPMAN Investment Limited, N10.9billion; ACON, N24.1billion;  Atio Oil, N64.4billion; AMP, N11.4billion; and Emac Oil, N19.2billion.

Findings by our correspondent indicated that in 2006, only MRS, Total and Oando were officially listed as beneficiaries of the fuel subsidy recognised by the Federal Government.
The three companies were said to have been listed as “major marketers.”

But in 2007, AP and Mobil  joined the three companies and were listed under the category of majors.
The same year, NIPCO was introduced and listed under the category of petrol depot owners.
A new category of “independents” included some marketers who had no depots.

AITEO Energy Resources and Triquest Energy was also added in 2007, bringing the total to eight beneficiaries of the fuel subsidy.
The Nation gathered that the list of subsidy beneficiaries increased sharply in 2008 to a total of 23, made up of six majors.
In 2008,Conoil joined, and NIPCO was joined by Capital Oil and Folawiyo Energy, under the category of depot owners.

The list of “independents” also increased from two in 2007 to 14 in 2008 as AITEO and Triquest were said to have been joined by Triquest Oil services, IMAD Oil & Gas, Integrated Oil and Gas, Rahamaniyya, AMG Petro Energy, Brittania, ACORN, A-Z Petrolleum, SHIELD Petroleum and MAJOPE Investment Limited.

And in 2010, the beneficiaries of the subsidy payment under the category of major marketers remained six, the depot owners remained two, but the list of independent marketers went up to 28 with the curious inclusion of many relatively barely known companies.


http://www.thenationonlineng.net/2011/index.php/news/28463-senate-names-fuel-subsidy-beneficiaries.html

addtional links:

http://www.vanguardngr.com/2011/12/senate-unmasks-fuel-subsidy-beneficiaries/
http://www.tribune.com.ng/sat/index.php/front-page-articles/6035-senate-exposes-fuel-subsidy-cartel-over-100-firms-share-n1426-trillion-in-8-months-oando-eternal-ap-bovas-others-involved.html

let the drama begin, they shld tell us those behind these crimes in names anyone can front with company name, who r those GEJ is afraid of?

This is wickedness of the highest order, how can some of the self styled richest men in Africa be stealing from the masses? These guys must be made to answer for it.

HAHAHAHAHAHAHAHA
NL don kwayet!
Some pipo papa and mama names dey hide behind those 'filing stations' names ooooooh!

Mu he he he he he he



O lovers of Nigeria. . . where art thou?

Fawu nyansh do h-opin wide!

What a primitive country!!!!

There is no shocker in this news! What we need is proof that the volume actually supplied to Nigerians over the period is significantly less than the volume subsidized. I.e. We have to prove that these marketers inflated their volumes. They have every right to collect whatever billions accrue to them if they have supplied the right quantity.

And how will this Nollywood movie end? Part 2, 3 and possibly part 4,

efisher:

There is no shocker in this news! What we need is proof that the volume actually supplied to Nigerians over the period is significantly less than the volume subsidized. I.e. We have to prove that these marketers inflated their volumes. They have every right to collect whatever billions accrue to them if they have supplied the right quantity.

there is shocker oh!!! . . . .part of the article says they spent about 35% of the money in less than 15% of total spending period.

The senate who were once eager to expose these racket are now hiding some names while mentioning others, especially those construction companies, why hide their names.  Go thru it again.

Is anybody still wondering why
SW so desperately wants to hold
on tightly to one Nigeria, at the
expense of SS and some SE states.
Refusing to either go left or go
right. They just took a lopsided
stand at the middle. Jonathan is
not a fool. He know his people
has been rode like a donkey all
these years. The more reason he
wants to end it all. MEND/Boko HARAM here is a fresh list of new targets! So get to work boys, kill them all!

sheyguy:

there is shocker oh!!! . . . .part of the article says they spent about 35% of the money in less than 15% of total spending period.

The senate who were once eager to expose these racket are now hiding some names while mentioning others, especially those construction companies, why hide their names.  Go thru it again.

theres nothing shocking about this news cos its simple. the marketers presented their bills/invoices to NNPC for payment and NNPC paid them. what should shock us is if NNPC or whoever thats concerned failed to verify the claims before making payments to these marketers and how com the list grew from less than five prior to 2007 to over 25 in 2011. why didnt NNPC raise alarm or refuse to pay these new 'importers' that werent part of the known importers?

read this from the news

Findings by our correspondent indicated that in 2006, only MRS, Total and Oando were officially listed as beneficiaries of the fuel subsidy recognised by the Federal Government. The three companies were said to have been listed as “major marketers.” But in 2007, AP and Mobil joined the three companies and were listed under the category of majors. The same year, NIPCO was introduced and listed under the category of petrol depot owners. A new category of “independents” included some marketers who had no depots. AITEO Energy Resources and Triquest Energy was also added in 2007, bringing the total to eight beneficiaries of the fuel subsidy. The Nation gathered that the list of subsidy beneficiaries increased sharply in 2008 to a total of 23, made up of six majors. In 2008,Conoil joined, and NIPCO was joined by Capital Oil and Folawiyo Energy, under the category of depot owners. The list of “independents” also increased from two in 2007 to 14 in 2008 as AITEO and Triquest were said to have been joined by Triquest Oil services, IMAD Oil & Gas, Integrated Oil and Gas, Rahamaniyya, AMG Petro Energy, Brittania, ACORN, A-Z Petrolleum, SHIELD Petroleum and MAJOPE Investment Limited. And in 2010, the beneficiaries of the subsidy payment under the category of major marketers remained six, the depot owners remained two, but the list of independent marketers went up to 28 with the curious inclusion of many relatively barely known companies.

the last emphasized part of the news is what we should question NNPC. does it mean we can just be increasing the list of marketers without any form of measure/control?

What I find funny is: the President has no desire at all for the truth to come out and been unbale to provide any satisfactory answers, even to the slightest degree, the questions the House of Reps put to him when he had a meeting with few weeks ago to lobby for Subsidt Removal.

^cos oga jona is being pushed to act cos he doesn't have a mind of his own. he knows nothing about what hes presiding over. shamefull

[size=20pt]Is anybody still wondering why
SW so desperately wants to hold
on tightly to one Nigeria, at the
expense of SS and some SE states. . . . . . .They just took a lopsided
stand at the middle[/size]

Gbam!
The same Yoruba peeps that will be shouting IBB and Atiku all over Nairaland oooh!
Mu he he he he he he
Nauseating creatures!

Who do we blame?
Not the olodo SS/SE?

so Yorubas are behind these oil cartel subsidizing money guzzling stinkers enh? Na wa o we have another cabal in the SW

Instead of using their intellect to dissect and understand the ISSUES at stake, some buffoons and bigots simply start to cast aspersion on a whole tribe. This country is just going backwards with the quality of some people who think they must comment hastily on every topic.

Can't you just keep quiet instead of foolishly exposing your idiocy?

Nobody is going to be punished for this. As usual this matter will get swept under the carpet.

Unfortunately, almost all the names listed in this so- called cartel were recently given national honors. What an irony.

Sinachay:


Gbam!
The same Yoruba peeps that will be shouting IBB and Atiku all over Nairaland oooh!
Mu he he he he he he
Nauseating creatures!

Who do we blame?
Not the olodo SS/SE?

Who told they are Yorubas? you better watch that your stinking mouth  before they firebombed it. It is always better to double checked your facts before making a comment. Mumu of the highest order.

Wazobia complete here o. . .
Oando = Obj
Con oil = Adenuga
Capital oil = Mr. Ifeanyi Uba
M. R. S oil = Alhaji Sayyi Idris Dantata.
NIPCO oil = Chief Bestman Anekwe
A.P oil = Otedola.
Folawiyo Energy = chief Folawiyo.
Aiteo energy = Mr. Peters.
More to come. . .

can't we bring out logical arguments that can be forwarded to the senate on how to handle this matter
instead of calling pple names? You dont think your idea might just be the best to handle the situation?
Why are nigerians like this?

Funkymallam:

Wazobia complete here o. . .
Oando = Obj
Con oil = Adenuga
Capital oil = Mr. Ifeanyi Uba
M. R. S oil = Alhaji Sayyi Idris Dantata.
NIPCO oil = Chief Bestman Anekwe
A.P oil = Otedola.
Folawiyo Energy = chief Folawiyo.
Aiteo energy = Mr. Peters.
More to come. . .

Thatz the reason why fuel subsidy has to be removed becos it goes to those pockest you have listed.
Howereve ,

I laugh wen some people argue that these importers hv done nothing wrong. First of all, virtually all of them aside the major marketers(MRS,Total,Exxon,Oando and ap) did not meet the requirements to enter the business.Reason being that they dont hv storage tanks,n were not registered in cac as oil marketers. The question is how did they enter the business and started enjoying the subsidy ?  There is no other reason than that they connived with some NNPC officials to commit the fraud.
Financial fraud is a criminal offence, and I think this is where EFCC would hv to show they'r in for business.

oshyno:

I laugh wen some people argue that these importers hv done nothing wrong. First of all, virtually all of them aside the major marketers(MRS,Total,Exxon,Oando and ap) did not meet the requirements to enter the business.Reason being that they dont hv storage tanks,n were not registered in cac as oil marketers. The question is how did they enter the business and started enjoying the subsidy ? There is no other reason than that they connived with some NNPC officials to commit the fraud.
Financial fraud is a criminal offence, and I think this is where EFCC would hv to show they'r in for business.

Well said

Walahi talahi sumonbilahi,if cautN is not well taken one will just develop a first class PB on this fuckin second to nothing cheatings dat av been well executed 2 extent dat av knw nearest solutN. I think this's d ice-berg of the issue,infact it has generated a roots throughout any boundary and beyond {mr,president} leave of wisdom,bond,bravery and instinct.

igbo boy:

so Yorubas are behind these oil cartel subsidizing money guzzling stinkers enh? Na wa o we have another cabal in the SW  

u be mumu, i wonder how old u are!

Interesting, I wouldnt classify it as stealing from Nigerians. OUR SO CALLED POLITICIANS ALLOWED IT TO HAPPEN, IF NOT IT WOULDNT HAVE. AND SOME OF THEM THAT ARE SHOUTING TODAY ARE THEY NOT EVEN BENEFICIARIES OF THE SUBSSIDY, DID MOST OF THE COMPANIES NOT FUND THEIR CAMPAIGN?

The Petroleum Support Fund policy of the government ensures that these players receive subsidy payment imported fuel so i do not actually see anything wrong
But what should be done is verify the amount received tallies with amount of subsidy collected. Only then can u allege wrong doing and then call them cabal.

this is rubbish
the plan of the so called subsidy is getting out of hand

badesco:

Who told they are Yorubas? you better watch that your stinking mouth  before they firebombed it. It is always better to double checked your facts before making a comment. Mumu of the highest order.

You are the dunce of course. Na you and your deformed, ancestors plus born/un-born stinking generations firebomb go kill for their sleep or your poverty-stricken village. . . .like rotten dried fire wood full of canker worms!

If you do not know that 65% of petroleum proceeds go to Western Nigeria and their UGLY, LAZZZZY, humpty-dumpty-sat- on-the-wall-Ogboni Otumbas!
See the list so far. . .which is nothing but the truth.
YOU GUTTER-SNIPE!

HA!

Funkymallam:

Wazobia complete here o. . .
Oando = Obj
Con oil = Adenuga
Capital oil = Mr. Ifeanyi Uba
M. R. S oil = Alhaji Sayyi Idris Dantata.
NIPCO oil = Chief Bestman Anekwe
A.P oil = Otedola.
Folawiyo Energy = chief Folawiyo.
Aiteo energy = Mr. Peters.
More to come. . .

Whih kain ye ye WAZOBIA?
See the names up there?
4/5 OUT OF 8 NA YORUBABOOOOONS!!!
Awon ole!
Old goats that sit down doing nothing but marry new wives and chase women all over Nigeria with all their incurable ailments God has so punished them with!

Please Lets be focused and be serious for once on nairaland and lets looks at this issue very criously and stop all dis messing about. I may be wrong ohh, but I feel its still a win win situation for some of the major oil companies, oando, total conoil etc. Y was the government paying subsidy in the first place? to reduce the price of petroleum products in the downstream market. Then they decide to remove this so called fuel subsidy hence these big players will sell @ the normal price  by which petroleum products will be more expensive hence they are making more money!!!

. . . .And who is the government?

oshyno:

I laugh wen some people argue that these importers hv done nothing wrong. First of all, virtually all of them aside the major marketers(MRS,Total,Exxon,Oando and ap) did not meet the requirements to enter the business.Reason being that they dont hv storage tanks,n were not registered in cac as oil marketers. The question is how did they enter the business and started enjoying the subsidy ?  There is no other reason than that they connived with some NNPC officials to commit the fraud.
Financial fraud is a criminal offence, and I think this is where EFCC would hv to show they'r in for business.

My brother/ sister please check your facts.
These guys (I mean Capital Oil, Folawiyo, NIPCO etc) all have tank farms. I know this because my friend is a petroleum surveyor and has been to the tank farms belonging to most of these companies. I don't know about registration with CAC but I guarantee you, that's not a difficult thing to do.
If at all any of them do not have, then they will be the minority.
The fraud I percieve is in the astronomical increase from N500m to N1.4 trillion in one year. Someone needs to check that and tell us what happened.

vascey:

My brother/ sister please check your facts.
These guys (I mean Capital Oil, Folawiyo, NIPCO etc) all have tank farms. I know this because my friend is a petroleum surveyor and has been to the tank farms belonging to most of these companies. I don't know about registration with CAC but I guarantee you, that's not a difficult thing to do.
If at all any of them do not have, then they will be the minority.
The fraud I percieve is in the astronomical increase from N500m to N1.4 trillion in one year. Someone needs to check that and tell us what happened.

But what should be done is verify the amount received tallies with amount of subsidy collected. Only then can u allege wrong doing