The Senate on Wednesday ordered its Committee on Petroleum (Downstream) to investigate the Nigerian National Petroleum Corporation (NNPC) over claims that it mismanaged N5.1 trillion subsidy funds between 2006 and 2016.
The committee also sought the investigation into an alleged abuse of product marketing and distribution between 2006 and 2016.
Adopting a motion sponsored by Dino Melaye (APC, Kogi West) and titled “Discrepancies in subsidy payment and non-remittance of funds by the NNPC to the Federation account”, the upper chamber of the National Assembly directed the panel to exhaustively audit the accounts of the national oil agency as it relates to fuel subsidy and abuse of product marketing and distribution during the period under review.
Melaye expressed dismay that despite the crackdown by the Buhari administration, the NNPC has refused to remit funds to the federation account.
“The independent marketers account for 49 percent of the imported petroleum product, while the NNPC accounts for 51 percent of imported products, but this does not justify the huge amount it has been paid as subsidy in the last 10 years,” the senator said.
“From the records derived from the PPMC, 5 to 10 cargoes of imported crude arrives the country monthly, while about 5 cargoes are refined locally and each cargo contains 5.8 million litres of the refined crude products.
“The excess products which cannot be dispensed that goes into different tank forms owned by private individuals are not properly accounted for as they illegally sold off by the owners of these tank farms in a manner that is opaque and usually designed to rip off the public and enrich a few persons stupendously at the expense of the masses.”