The Nigerian National Petroleum Corporation (NNPC) has disclaimed the insinuation that it has in its custody $3.5billion Subsidy fund.
In a statement released a few hours ago by the NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu explained that at the hit of the shortage of products supply at the close of last year, the National Assembly asked the NNPC to do everything possible to stem the hiccups.
Ughamadu revealed that this prompted the NNPC to initiate the move to raise a revolving fund of $1.05billion, since the corporation was, and still is, the sole importer and supplier of white products in the country.
The NNPC spokesman said ever since, the fund had been domiciled in the Central Bank of Nigeria, saying at no time was it in the custody of the NNPC.
Ughamadu further stated that the said fund, dubbed the National Fuel Support Fund, had been jointly managed by the NNPC the Central Bank of Nigeria (CBN), the Federal Ministry of Finance, the Petroleum Products Pricing Regulatory Agency (PPPRA), Office of the Accountant General of the Federation (OGF), the Department of Petroleum Resources (DPR) and the Petroleum Equalization Fund (PEF).
Mr. Ughamadu in his clarification, said NNPC did not independently spend a dime of the fund which he said was to ensure stability in the petroleum products supply in the country. He saying:
“For the avoidance of doubt, the corporation was fully aware that it is only the National Assembly that has the statutory responsibility to appropriate on petroleum subsidy matters,” he said.
This is coming after on the Senate at the resumption of plenary, moved to begin an investigation into the alleged $3.5billion spent under the ‘Subsidy Recovery Fund’ of the NNPC.
The matter came up when a point of order was raised by the Senate Minority Leader, Senator Biodun Olujimi, where she cited a ThisDay article on the $3.5billion earmarked as subsidy recovery funds by the NNPC. She said:
“I bring before this chamber this very important issue of national importance. It has to do with an article published in today’s ThisDay newspaper and it deals with the $3.5billion earmarked as subsidy recovery funds by the NNPC.
“Mr. President, since 1999, there has always been a budget for subsidy, however, this has been jettisoned by the current government, which leaves this administration in a very dire strait.
“What is happening now is that there is a fund named the ‘Subsidy Recovery Fund’ and it is being managed by only two individuals in the NNPC: the Managing Director and the Executive Director on Finance.
“This fund is too huge for two people to manage, and right now, the $3.5billion is too huge to be managed without appropriation without recourse to any known law of the land.
“You remember Mr. President that following the passage of the budget, you mentioned in your remarks, that there should be a budget for the subsidy and it should be brought before the National Assembly — that has not been done.
“What has happened is that by the report of ThisDay newspaper, it is almost certain that $3.5billion is a slush fund which is just being managed by just two individuals — and that is not correct.
“I want to urge the Senate to cause the Committee on Downstream, Chaired by Senator Marafa, to compel the NNPC to come before the Senate Committee and explain why this is so. Nigerians need to know what has happened to the funds that have been used so far — and the new terminology that is being used under subsidy recovery,” Senator Olujimi said.
Responding, the President of the Senate, Dr. Abubakar Bukola Saraki, reminded the Senate that he had called for the executive to submit its petroleum subsidy budget to the National Assembly, when the 2018 budget was passed in May.
“Distinguished Colleagues, when we passed the budget, I said that there was a need for the executive to bring forward the budget for the subsidy.
“In light of the enormity of the issues before us — where we are talking about a subsidy of almost $3.5billion I would like to direct that the Senate Leader and the Chairman of the Committee of the Downstream, should urgently summon those in NNPC who are responsible for this. We must look into this matter and report back to the Senate plenary by next week, where the Committee will have a report that we can debate.
“On this issue, I do not want us to be speculative. Let us go by the facts, so that our contributions are not seen to be partisan. This matter is too serious for us to be partisan about it.
A lot of us have been around long enough to know how this matter should have been treated. Now, it has gotten to a level where it involves over $3billion — which is not a small amount of money.
“With the leave of my colleagues, if we all accept, we direct the Leader and the Chairman of the Downstream Committee, to look into this matter and report to the Senate by next week,” the Senate President said.