Fuel subsidy: Importers to defend N1.43tn received

Oil companies that benefited from the N1.43tn 2011 fuel subsidy payments will next week appear before the Senate to defend the amounts they were paid.

On Friday, the Senate Joint Committee investigating the fuel subsidy came out with a list of over 100 fuel importers who allegedly received huge sums of money as subsidies.

The committee had claimed that it discovered that about 73 of the companies did not qualify to participate in the process since they had no depots or tank farms as required by the guidelines.

There was also the inclusion of construction companies which were paid the subsidy, a development that was queried by the committee, but for which no answers were provided by the Petroleum Products Pricing Regulatory Agency.

Chairman of the Joint Committee, Senator Magnus Abe, told our correspondent on Sunday that it had yet to reach any conclusion on what to do with the companies involved.

According to him, it would only be fair to give the said beneficiaries a chance to defend themselves before bringing them to judgment.

He said, “We cannot judge anybody when we have not heard from them. We have to hear from them before we reach any conclusion.

“People are of the view that because of the investments in the subsidy we should have some more benefits that we have now, so we will give them a chance to tell their own side of the story.

“We as a committee have promised that we will be fair to all and get to the bottom of the issues. So we are ready to do a thorough job.”

Some of the oil companies mentioned by the committee to have received subsidy included Oando Nigerian Plc, which received N228.506bn; MRS Ltd, N224.818 bn; Enak Oil & Gas, N19.684bn; Conoil , N37.960bn; Bovas & Co. Nig. Ltd, N5.685bn; and Obat, N85bn.

Also, Integrated Oil and Gas, which has former Minister of Interior, Capt. Emmanuel Iheanacho (retd.), as a principal player, allegedly received a total of N30.777bn in 2011, while IPMAN Investment Ltd got N10.9 bn.

Others include Africa Petroleum Plc, which allegedly got N104.83 bn; AMP Petro-energy, N11.4 bn; Akor Plc, N24.11 bn; A.Z Petroleum, N18.13 bn; Capital Oil, N22.42 bn and Dozie Oil and Gas, N3.37 bn.

The list also include Mobil Oil Plc, N18.60 bn; Matrix Energy, N12.612 bn; Ford Oil, N8.502 bn; North West Petroleum and Gas, N46.27 bn; NIPCO Plc, N23.2 bn; Ontario Oil, N4.9 bn; Origin Oil and Gas, N2.69 bn; and Ocean Energy, N1.77 bn.

Link:
http://www.mobile.punchng.com/index.php?option=com_k2&view=item&id=6887:fuel-subsidy-importers-to-defend-n143tn-received&Itemid=542

sheyguy:

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Chairman of the Joint Committee, Senator Magnus Abe, told our correspondent on Sunday that it had yet to reach any conclusion on what to do with the companies involved.

According to him, it would only be fair to give the said beneficiaries a chance to defend themselves before bringing them to judgment.

He said, “We cannot judge anybody when we have not heard from them. We have to hear from them before we reach any conclusion.

“People are of the view that because of the investments in the subsidy we should have some more benefits that we have now, so we will give them a chance to tell their own side of the story.

“We as a committee have promised that we will be fair to all and get to the bottom of the issues. So we are ready to do a thorough job.”
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I hope these company can come out bold and give us information that leads to those within NNPC, PPPRA and Co. they have colluded with so far.

As for me, I don't regard them as thieves as the government want to brand them

Last week, the government released a list of those benefiting from the so called fuel subsidy but you should ask yourself what is the benefit in fuel subsidy ?

Was there no demand for it before they, started importing it ?

If no, then why is the government STILL buying petroleum products from this beneficial

1.There is simply nothing like those benefitting from the subsidy,its simply business
2.There is a shortfall in demand and the supply of petroleum product in the country
3.Business men import the products to make up for the shortfalls
4.There is what we call landing cost and profit margin per litre, which the importers must make from their investment
5.The govt have failed in thier social contract with the people to provide the basic nessesity by not allowing the refinaries to work


Now we know why are our refineries not working if the business man aka beneficials are the ones enjoying the fuel subsidy ?

If the subsidy is removed, Would the government still not be paying huge amount to the importers aka the benefit thieves.

Who is the government fooling about this so called fuel subsidy ?

Now if the importers decide to to change their prices, would the government not still buy it that that price since we have no refinery to produce our own crude oil.

Is the government not thinking that if the refineries are built and producing upto 80% of our daily consumsion of petrol that fuel subsidy would NATURALLY GO ?

Now BEAF please answer this questions apart from the ones stated above

1. What are our taxes used for ? Are they to pay Governors and Asorock food

2. Since the FG collects tax from the subsidy thieves, what have those sums of money been used for ?

3. Our money gotten from the exportation of crude oil, where has it gone

Lastly, given the fact that Our government no long do any governmental function for us, such as building new roads (not repair), free education etc, What would now be the job of the government ?

Or are we just paying out taxes for them to be paid ?

The government should answer these questions or any other poster that has the answer

@alj_harem
i don't quite agree with your views above, oil subsidy problem is mainly a problem of dishonest and irresponsible pple in charge of our oil colluding with some "Powerful" elements like Oil marketers and highly placed political figures. they have succeeded in shortchanging the system(innocent Nigerians and our Govt.) thru false claims at different stages the oil goes thru b4 it gets to the common man.
What i will suggest for to you is that we press the govt to repair our refinery that will all the fraudulent deals to disappear for good, if the refiniries are running at capacity there will be no need for importation that leads to false claims from marketers and NNPC/PPPRA agent. The main challenge is getting the refineries to work optimally by freeing it from the "second cabals system" who have made it their personnal refinery.

In case u don't know the "second cabal system" i mean, they are the same as 1st one but they also collude with the refinery officials and secretly run our refineries at significant high production capacity while they make claims of far lower output through their mouthpiece: NNPC/PPPRA, the extra oil they have secretly refined is not only sold to Nigerians they are brought in as imported petroleum product, they then go ahead and make false claims of the volume brought in to shortchange the govt for the second time and the whole of Nigeria at large.

An Effectively and efficiently run refinery is everything to the common man cos it keeps the price of petroleum product down for them. subsidy removal is a solution as well but it is an incomplete one becos the money goes to an inefficient govt. which means the oil subsidy will only change hand. some will be used for capital projects as claimed while the bigger part will end up with new and untouchable cabals (B*** and co.) within the govt (GEJ/future GEJs and co).

For more info on the "Second cabal system" https://www.nairaland.com/nigeria/topic-807613.0.html