According to Comptroller-General of Nigeria Customs Service, Col. Hameed Ali (retd.), the Nigerian National Petroleum Company Limited is unable to adequately account for the volume of Premium Motor Spirit (petrol) consumed in the country daily, raising doubts about the annual over N6.34tn subsidy payment for the commodity.
Ali made these remarks while addressing the deficit of between N11tn and 12tn in the 2023 budget as proposed in the 2023-2025 MTEF/FSP during a presentation to the House of Representatives’ Committee on Finance at the continued hearing on the proposed 2023-2025 Medium Term Expenditure Framework and Fiscal Strategy Paper in Abuja on Thursday, September 1.
The Customs Boss contended that NNPC’s claim of 98 million litres/day consumption cannot be scientifically proven and highlighted an excess supply of 38 million litres of PMS daily.
“If we are consuming 60 million litres of PMS per day, by their own computation, why would you allow the release of 98 million litres per day? If you know this is our consumption, why would you allow that release? Scientifically, you cannot tell me that if I fill my tank today, tomorrow, I will fill the same tank with the same quantity of fuel. If I am operating a fuel station today and I go to Minna depot, lift petrol and take it to Kaduna, I may get to Kaduna in the evening and offload that fuel. There is no way I would have sold off that petrol immediately to warrant another load. So, how did you get to 60 million litre per day? That is my problem.
“The issue of smuggling: if you release 98 million litre in actual and 60 million litres is used, the balance should be 38 million litres. How many trucks will carry 38 million litres every day? Which road are they following and where are they carrying this thing to?”
In response to Ali’s statement, the Committee’s Deputy Chairman, Saidu Abdullahi, expressed concern that funds allocated for the subsidy scheme, which could have financed capital projects, are being diverted for personal gains.