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Fuel Subsidy Scam: NNPC, PPPRA & 72 Firms to refund N1.07tn Subsidy Funds stolen within 3months

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Early this year, the Federal Government of Nigeria announced that there will be a removal of fuel subsidy which led to an increase in the price of fuel from N65 to N141 per litre. After massive protests, the price was reverted back to N97.

The Federal Government’s excuse in simple language was that the government could no longer pay subsidies on the price of fuel and would like to use that money for other developmental projects in the country.

It is therefore sad and shocking to see that Nigerians have been cheated all along!

In what can be described as the biggest scam of all times, the Nigerian National Petroleum Corporation (NNPC), the Petroleum Products Pricing and Regulatory Agency (PPPRA) and 72 other firms have been asked to refund N1.07tn said to have been fraudulently paid to oil marketers.

The House of Representatives probe panel on subsidy fund mismanagement also recommended that the Office of the Accountant–General which allegedly paid N127.8bn within 24 hours to unknown beneficiaries should return the money. The AGF paid N999m 28 times in one day to the “unknown entities.”

This was contained in the report of the House AdHoc Committee on Monitoring of the Subsidy Regime, led by Hon. Farouk Lawal, submitted on Wednesday 18th April, 2012.

The committee, which was set up in the wake of the nationwide uproar that greeted the January removal of subsidy on fuel by the Federal Government and the controversies arising from the management of the subsidy fund revealed that “more than 900 per cent over the appropriated sum of N245bn” originally budgeted for subsidy in the 2011 budget was allegedly spent on fuel subsidies last year.

A breakdown of the N1.07tn recommended for refund showed that the NNPC would return N310.4bn for subsidy it fraudulently claimed for kerosene.

The PPPRA was asked to refund N312bn it paid to itself, while the marketers who “violated Petroleum Subsidy Fund” were directed to return N8.6bn to government treasury.

In the category of defaulting firms, who also “refused to appear” before the panel, it recommended the recovery of N41.9bn.

The panel raised the alarm over the existence of “unnamed entities,” which it said claimed N999m “128 times to the tune of N127.8bn.”

The report goes on to recommend that the NNPC be unbundled to make its operations more efficient and transparent, through the passage of a well-drafted and comprehensive Petroleum Industry Bill.

So much money looted, so much corruption within highly placed petroleum regulatory bodies like the NNPC and PPPRA. It’s really sad.

But more sad that when Nigerians were losing their lives on the streets protesting the removal of the fuel subsidies, the money was there all along, stolen by a few greedy people.

Such looting of funds that we hear of in the news daily goes a long way to show that Nigeria is a very wealthy nation, with vast resources and funds that can adequately cater for the teeming population. If only the people at the helm of affais, those managing public funds would keep their greedy hands off them and use it for the good of the nation, Nigeria would be a much better place to live in.

News Source: Punch News
Photo Credit: CNN

Adeola Adeyemo is a graduate of Industrial Relations and Personnel Management from University of Lagos. However, her passion is writing and she worked as a reporter with NEXT Newspaper. She believes that anything can be written about; anything can be a story depending on the angle it is seen from and the writer's imagination. When she is not writing news or feature articles, she slips into her fantasies and creates interesting fiction pieces. She blogs at www.deolascope.blogspot.com

29 Comments

  1. emi

    April 19, 2012 at 8:01 am

    ahhhhhhhhhh i’m so angry .

  2. Bobby Edegbo

    April 19, 2012 at 8:33 am

    It is not enough to ask NNPC, PPPRA, & the oil marketers to refund the over 1 trillion Naira, they should be prosecuted, blacklisted and send to jail like Ibori. This is a shame to Nigeria. Yet, these so called “cabals” cannot be touched. Mr. President, the Judiciary and the Law Enforcement Agencies have work to do, but are they up to the task? Time will tell.

  3. Ginika

    April 19, 2012 at 8:34 am

    Wahlai…. if they dont refund that money, they can easily be killed and the families sold in slave trade ooo

    What utter none sense is this?

  4. pynk

    April 19, 2012 at 8:38 am

    Lets see the fallout begin.
    Personally, they should just deregulate and allow the industry to go private. We would be much better off. At least more jobs will be created, the sector will become more competitive and maybe we will finally have light.
    You can use a liberated sector to excercise one that is heavy on subsidy abeg.

  5. emi

    April 19, 2012 at 8:58 am

    it think Mrs Ngozi Okonjo Iweala should demand for a refund from Harvard

  6. LPS

    April 19, 2012 at 9:23 am

    This is just unfair. Gosh am so angry!!!
    http://personalstuvs.blogspot.com

  7. omega2

    April 19, 2012 at 9:29 am

    this seriouse i wonder how some people will be suffring for others people misdeed. I hope Mr President know what to do on this, for some people to suffring and some are enbessue the money that soppose to be for the nation. Please this murdral it most not be taking ligthly

  8. James

    April 19, 2012 at 9:31 am

    God wl help us frm ths fravdulent cabal!

  9. williams idopise

    April 19, 2012 at 9:36 am

    Mr president sir! you used the police , army,sss, air force ,navy and other security agencies against Nigerians during the fuel subsidy removal protest,now the thieves has been exposed! why are you not using this same security forces against these criminals that has been exposed? the blood of every nigerian that died during and after that protest will be on you if you fold your hands and do nothing these looters, these people are terrorist and should be treated as boko haram

    • emi

      April 19, 2012 at 9:42 am

      i concur

  10. Razor

    April 19, 2012 at 9:43 am

    Prosecute the thieves? I don’t think so, with the type of law enforcement and judiciary system we have. Also the vast majority of Nigerians don’t give damn about how the country is mismanaged. Give it a few more months and everything will be swept under the carpet, as usual.

  11. Treasures

    April 19, 2012 at 10:05 am

    This is disheartening. I was hoping that Nigeria has finally attained maturity, but obviously, the Judases in the family won’t let us grow. God will bring on them all the plagues of Egypt and destroy the works of their hands. The government has the power and the force to prosecute these loots. We cannot always wait for other people to fight our fight, UK has shown us that they are not above the law. The Fed. Govt shoult bring them all to book.

  12. marcus ibe

    April 19, 2012 at 10:22 am

    It’s horrible how the cost of living increase every day but standard remain very low… And we owe it to a group of individuals the nation honours every year, why do we enjoy stealing and looting.

  13. iisaac

    April 19, 2012 at 10:44 am

    Those that called 4 the head of Jonathan becos of subsidy should now bury their ulgly head in shame. The likes of NLC , civil society, Tunde Bakare etc should apologise to the president 4 their roles in the fuel protest that almost toppled the regime. Everybody eye don clear now ooooo.

    • mma

      April 19, 2012 at 2:44 pm

      are you for real if nigerians did not protest do you think you will be reading the above news and mind you jonathan is not off the hook thoes people have to return the money and then prosecuted for him to say he is off the hook

  14. omidan

    April 19, 2012 at 11:01 am

    This is serious! so, why did the president say that fuel subsidy must be removed in january 2012 without looking thoroughly into the matter! plsssssssssss i believe the govt are into all this fraud,if we actually have a good leaders in which i know we dont! All the govt officials and private to this matter must be prosecuted! and be brought to book.
    i believe Nigeria will work in my own time and God will deal with all those that oppresses us and the generations! it’s a matter of time their evil work and scheme will caught with them.
    We need a govt that will be accountable to the citizen every penny they spend and it’s time to face other resources we possess not only oil HABA!!!!!!

  15. Nomy

    April 19, 2012 at 12:09 pm

    Iisaac what are you talking about? If you cannot read, ask for help from somebody who understands, why should the CSO’s bury their head in shame? Jonathan should bury his entire body in shame and grief for not investigating properly before taking people to task for the crime of a few. Okonjo Iweala and her cronies should resign for inflicting pain on Nigerians when all they had to do was research and find out where the monies paid where going to. But no, they did not, they just pulled subsidy out from under us and we took to the streets, tied ourselves up for weeks at the beginning of the year, lost our lives and suffered needlessly for just a few.

  16. isee

    April 19, 2012 at 12:20 pm

    Nigeria,a country were the best way of making money is stealing. Who are they refunding the money to?Another bunches of thieves. God help us all.

  17. Jude Obite

    April 19, 2012 at 12:25 pm

    unending stories!!! Nigerian laws are obviously made for the poor and defenseless!!! When will these end??? Mr President you owe Nigerians justice if violence must not continue. These reports are provoking and volatile young men will always want to react, don’t blame them. It’s either these robbers are brought to book and the money judiciously invested or the country will burn more.

  18. diamond

    April 19, 2012 at 12:52 pm

    Na wa oh!
    From Pension to Ibori to NNPC, PPPRA, there’s enough money in this country to pay me everyday of my life for just being a citizen of this country. If i work, a very good SUV & wonderful house should be added.
    Kai! God dey oh!

  19. Adams

    April 19, 2012 at 1:37 pm

    ACORN Plc 8,514,900,513.00 Mr. Kolapo Lawson Mr. Doyin Adeyinka
    ALMINNUR Resources Ltd 2,543,800,931.00 Dele Bakare
    AMG Petro-Energy Ltd 7,226,773,136.00 Risqua Murtala Muhammed  
    ANOSYKE Group of Co. Ltd 1,318,443,535.00
    ASCON Oil & Gas Company 4,451,932,090.00 Aliko Gwadabe
    AVANT Garde Energy 1,154,824,298.00
    A-Z Petroleum 8,065,557,648.00 Alexander Chika-Okafor
    CAH Resources Association Ltd 24,205,727.00
    CONOIL Plc 3,027,526,589.00 Mike Adenuga
    CRUST Energy Ltd 1,192,651,581.00
    Downstream Energy Source Ltd 2,947,780,261.00
    DOZZY Oil & Gas Ltd 1,587,298,801.00 Sir Daniel Chukwudozie
    DUPORT Marine Ltd 3,555,127,358.00 Tosin Odusanya
    ECO-REGEN Ltd 3,339,101,218.00 Miss Ayorinde Oludemokun
    Eurafric Oil and Coastal Services 3,868,147,024.00 Anthony Onoh
    First Deep Water Discovery Ltd 3,932,207,739.00 Rita Demeyin Babalola Babatunde Babalola
    Fradro International Ltd 3,661,643,268.00 Adeyemi Roberts Kunle Roberts
    Fresh Synergy Limited 1,417,029,059.00
    Heyden Petroleum 3,345,455,733.00 Dapo Abiodun
    Ibafon Oil Limited 1,474,479,459.00 Mamemo Ibru
    Imad Oil and Gas Limited 2,701,002,852.00 Bashir Adamu
    Integrated Oil and Gas 13,252,055,429.00 Capt. Emmanuel Ihenacho
    Integrated Resources Limited 1,166,486,995.00
    IPMAN Investment Limited 7,538,589,178.00
    Knight Bridge 1,685,869,439.00 Donald Njoku
    Linetrale Oil Supply and Trading Co 1,213,903,930.00 Mustapha Fasinro
    Lingo Oil and Gas Company Limited 1,201,297,922.00 Emmanuel Bazuaye
    Lloyds Energy Limited 4,370,512,172.00
    Lottoj Oil and Gas Limited 1,427,429,910.00 Henry Mojekwu Eugene Mojekwu
    Maizube Petroleum Limited 5,509,407,903.00 Alh Aminu Abubakar
    Matrix Energy Oil and Gas Limited 11,211,040,786.00 AbdulKabir Adisa Aliu
    Menol Oil and Gas Limited 4,333,348,489.00
    Mob Integrated Services 5,066,786,851.00
    Mobil Oil Nigeria Plc 2,660,968,597.00 Adetunji A. Oyebanji
    Mut-Hass 1,102,084,041.00 Bridget Adeoshun
    Nadabo Energy Ltd 2,660,902,801.00 Ali Abubakar-Peters
    Nasaman Oil Services Ltd 3,441,253,193.00 Asmau Anyinmeku Ali
    Natical Petroleum Ltd 5,276,169,320.00
    Nepal Oil & Gas Services Ltd 2,353,911,978.00 Ngozi Ekeoma
    NIPCO Plc 7,838,353,057.00
    Oakfield Synergy Network Ltd 988,920,219.00
    Ocean Energy 1,778,180,051.00 Efe Egube
    OilBath Nigeria Ltd 1,019,644,138.00
    Ontario Oil and Gas Nigeria Ltd 4,248,727,148.00 Bawo Etikerentse Walter Watgbasoma
    Origin Oil & Gas Ltd 4,141,367,099.00
    Petroleum Energy Ltd 908,805,371.00
    Phoenix Company Limited 1,827,838,204.00
    Prudent Energy & Services Ltd 1,360,898,638.00
    Rainoil Ltd 1,266,773,492.00
    Rocky Energy Ltd 1,620,110,167.00
    Ryden Oil Ltd 451,150,983.00
    Sea Petroleum & Gas Co Ltd 1,019,571,609.00
    Sedec Energy Ltd 845,226,771.00
    Setana Energy Ltd 2,791,264,070.00
    Shield Petroleum Co. Nigeria Ltd 1,502,198,610.00
    Sifax Oil and Gas Company Ltd 3,589,063,041.00
    Somerset Energy Services Ltd 3,015,221,487.94 Gladys Amaefule Walter Watgbasoma
    Stonebridge Oil Ltd 1,784,158,258.00
    Sulphur Streams Ltd 4,758,693,054.00
    Swif Oil Ltd 5,062,403,555.00
    Taurus Oil & Gas Ltd 6,472,821,001.00
    Techno Oil Ltd 547,179,342.00
    Tonique Oil Services Ltd 3,827,112,622.00
    Top Oil and Gas Development Co. Ltd 7,367,662,306.00
    Total Nigeria Limited 1,931,075,306.00
    Valcore Energy Ltd 8,709,548,082.00 Ronke Adeosun
    Vivendi Energy Ltd 1,127,773,642.00
    Yanaty Petro Chemicals Nigeria Ltd 4,682,342,270.00
    TOTAL 231,305,991,347.94

    • adamu

      December 17, 2012 at 4:24 pm

      why writing ok

  20. nukobino

    April 19, 2012 at 3:39 pm

    I’m so happy,efforts to tackle corruption has gone up a notch,However culprits need to pay for their heinous crimes.Don’t just ask them to reimburse,make time do time too…I mean people would loot if they know there a slim chance they might get away with it.

  21. elgidy

    April 19, 2012 at 7:00 pm

    govt should pls know that these sum’s of money (subsidy paid) to oil marketer’s are not profits but it is in infact depositor’s funds obtained from the banks as loans for oil import financing….all the above monies are therefore being returned to the banks and whatever margin’s goes to the marketers….and taking into account of the high cost of obtaining loans with high interest rates, it is rather difficult for most oil marketers to break even….pls the govt should really enlighten the public on this.

  22. Abdullahi danladi ibrahim

    April 19, 2012 at 7:40 pm

    These pple are heartles,babaric,saveges,armedrobers,bompiers n terrorists of d highest order than bh.God wil destroy them n their likes for our country to forge ahead.Mutanen banza yandaba.Allah ya tsine muku.Pls say ameen

  23. Philip Nwankwo

    April 19, 2012 at 8:37 pm

    @Adams: From the list I see some of the individuals actually own more than a single company that defrauded the nation. These are criminals and should be jailed right away as its clear their intention was to defraud and not to do business at all.

  24. jane

    April 20, 2012 at 4:34 am

    this subsidy removal scheme needs to be REVERSED because it has turned out to be what everyone thought it was, A SCAM!

  25. Bababa Mujtaba

    April 21, 2012 at 11:39 am

    These are the neocolonialists who imposed artificial poverty on Nigerians. I think the time to battle them to graves has come. Are the masses ready?

  26. PEGGY

    April 25, 2012 at 2:35 am

    immagine the total amount of cash that our govmnt gave out.yet enof poverty in d system.now d question is’DOES FUEL SUBSIDY EXIST?if yes,who is lieing?the govmnt or our petroleum marketers?and also how far will these probing go?can we still trust dis govnmnt?there is so much to correct in dis country.and there are some things that will never be right in these country,no matter the governmnt.GOD bless nigerians.

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