Gulf Oil and Gas accountACCOUNT

Nigerian Lawmakers to Investigate $17b Subsidies Received by NNPC

Source: Reuters 3/1/2017, Location: Africa

Share |
Nigeria's upper house of parliament will investigate allegations the state oil company illegally inflated funds it collected from an official subsidy scheme to 5.1 trillion naira ($17 billion) between 2006 and 2015, lawmakers said. The Senate's decision to launch an investigation followed an emergency motion raised by Senator Dino Melaye, who told the Senate there were possible irregularities in subsidies collected by NNPC from the government between 2006 and 2015 on its 51 percent market share of fuel imports. He did not name the source of the allegations.

NNPC was previously implicated in allegations of fraud in an investigation in 2012 that discovered a $6.8 billion fuel subsidy scam, one of the biggest corruption scandals in Nigeria's history. It was not immediately clear whether the new Senate investigation would include the 2012 allegations or look into entirely new ones. A spokesman for NNPC said the company would study any allegations if it is formally notified.

"NNPC has not been formally communicated on the issues. If received, the NNPC will study the alleged issues and respond accordingly," the spokesman said. Melaye's motion did not specify how much of the 5.1 trillion naira received by NNPC allegedly came from fraudulent activities. It did not explain how the amount of 5.1 trillion naira was calculated. The motion also alleged that the NNPC sent excess refined products to storage owned by private individuals, which was then sold off illegally by those owners.

In the 2012 investigation, companies including NNPC were found to have declared the same fuel import cargoes multiple times and claimed subsidies for fuel never delivered or sold to neighbouring states. Subsidies are a murky issue in Nigeria. The government hasn't allocated any money to them since 2016, but effective support remains in place, including giving petrol importers access to dollars at very favourable rates. ($1 = 305.0000 naira)

Legal News in Nigeria >>

Algeria >>  1/15/2018 - Eng. Mustafa Sanalla, NOC Chairman of the Board, Dr. Abdelmomen Weld Qadour Chairman and General Manager of Sonatrach Company and Mr. John W. Wallace ...
Egypt >>  1/11/2018 - ADES International Holding Ltd. (ADES), the London-listed company providing offshore and onshore oil and gas drilling and production services in the M...

Egypt >>  1/3/2018 - Siemens Gamesa Renewable Energy (SGRE) has secured a new order for the installation of 125 of its G97-2.1MW turbines (total capacity of 262.5 MW) at t...
Gabon >>  1/3/2018 - Spectrum, in collaboration with the Direction Generale des Hydrocarbures (DGH), has commenced the next phase of its shallow water 3D Multi-Client seis...

Egypt >>  12/27/2017 - The Minister of Investment and International Cooperation Dr. Sahar Nasr signed an agreement worth USD 200 million with Director of Natural Resources a...
Nigeria >>  12/26/2017 - The Rivers State Government and Shell Nigeria Gas (SNG) have signed a Memorandum of Understanding (MoU) for the distribution of gas to industries in t...

Related Categories: Events  Executive Recruiting  General  Legal  Petroleum Associations  Professional Associations  Sourcing & Procurement 

Related Articles: Events  Executive Recruiting  General  Legal  Petroleum Associations  Sourcing & Procurement 


Nigeria Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 |

More News

 

Oil & Gas Companies in Nigeria >>


Related Links

Gulf Oil and Gas
Copyright Universal Solutions All rights reserved. - Privacy Policy.