Latest update as State governors have accused the Nigerian National Petroleum Corporation (NNPC) of fraudulently doubling the nation’s daily petrol consumption from about 30 million to 60 million litres.
The governors made this known on Wednesday after a delegation led by Abdulaziz Yari, chairman of the Nigerian Governors’ Forum (NGF) and governor of Zamfara state, met with Vice-President Yemi Osinbajo at the presidential villa in Abuja.
At the meeting, the governors demanded a thorough probe of oil subsidy payments from 2015 to date, while they demanded that all petrol stations less than 10 kilometres to the nation’s borders be immediately shut.
This followed NNPC’s excuse that the sudden hike in petrol consumption is due to illegal export to neighbouring countries.
As part of their demands, all trucks transporting petroleum products must have tracking device installed in order to monitor their movement to discharge stations and that NNPC must henceforth clearly differentiate its earnings in sales as against taxes before remitting funds to the federation account to avoid unexplained shortfalls.
In attendance at the meeting were Udom Emmanuel , governor of Akwa Ibom state; Godwin Obaseki, governor of Edo state; Seriake Dickson, governor of Bayelsa state; Nasir el-Rufai of Kaduna and Atiku Bagudu, governor of Kebbi state.
Kemi Adeosun, minister of finance and Udo Udoma, minister of budget and national planning, as well as a representative of the NNPC GMD, also attended the meeting which ended at few minutes after 8pm.
While briefing state house correspondents at the end of the meeting, Yari said, “This is the second time we are meeting with NNPC in respect of remittances into the federation account.
Governors and the federal government are not satisfied with the way remittances are being made because there are so many questions raised on Nigeria, more especially on the 425,000 barrel domestic and 180,000 barrel component of Nigeria from the Joint Venture Partners,” he said.
“We met last week with NNPC and we came and briefed our chairman of the National Economic Council (NEC). We raised three issues: one, the issue of royalties. Each and every barrel taken out of the country, there is either 17 or 24 percent of it as royalty and there is 17 or 20 percent as tax.
“So, our main concern is that (DPR) said that the NNPC is not remitting anything from the payment of royalty; what they do is that they transmit direct from the NNPC to the federation account, which is not allowed by the law.
“According the law that established the DPR, section 196 of the Act, says all the royalty should be paid to DPR and then transmitted to the federation account, which is not happening.
“So, we discussed today and we have sorted those ones out. The NNPC will not transmit to federation account with clear distinction that this amount is for royalty and X amount is for taxes, and X amount is profits from the sales. So we achieved that.”