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Tag: Subsidy

  • EFCC arrests Ifeanyi Ubah over alleged N43.291b fuel subsidy scam

    EFCC arrests Ifeanyi Ubah over alleged N43.291b fuel subsidy scam

    Three suspects to face trial for N1.4b fuel subsidy scam

     

    For seven hours yesterday, the Economic and Financial Crimes Commission (EFCC) grilled the Chairman of Capital Oil, Mr. Ifeanyi Ubah, over alleged N43.291billion fuel subsidy fraud.

    He was still undergoing interrogation as of press time.

    Ubah was arrested by the operatives of the commission early yesterday.

    A source, who spoke in confidence, said: “His company was implicated in the scandal by the Aigboje Aig-Imoukhuede-led 15-man presidential panel, which re-investigated the fuel subsidy bazaar.

    “We had earlier invited Ubah for interrogation but when he did not honour the invitation, we decided to arrest him.

    “If nothing is found against him or his company, we will set him free. But if he has a case to answer, we will charge him to court.”

    Ubah was still undergoing investigation as of 5.05pm.

    EFCC spokeman Wilson Uwujaren confirmed Ubah’s arrest. The Special Fraud Unit of the Nigeria Police had in October last year arrested Ubah on a similar allegation.

    Based on SFU’s application, a Lagos Magistrate’s Court, remanded the Managing Director, Capital Oil and Gas in custody of Police Special Fraud Unit (SFU), Lagos over the alleged scam. Also charged and remanded with Ubah were Head of Trading, Nsikan Usoro, 35, Depot Manager, Godfrey Okorie, 41, General Manager, Chibuzor Ogbuokiri, 48; and Orji Anayo, 46, Executive Director (Operations).

    The case later went to a Federal High Court where Ubah was cleared of indictment by the Aig-Imoukhuede Committee. The coast is now clear for the EFCC to arraign three suspects for alleged N1.4billion fuel subsidy scam.

    Justice Olusumbo Goodluck of the Federal Capital Territory High Court in Jabi yesterday gave the EFCC the go-ahead to prosecute Helyn Aninye, Chizobam Ben-Okafor and Pon-Specialised Services Limited.

    Uwujaren said: “The judge struck out their (the accused persons’) application asking the court to decline granting the EFCC leave to arraign them for fraud, forgery and conspiracy to obtain the sum of N1.413,507,951.50 from the Federal Government of Nigeria by false pretence as subsidy under the Petroleum Support Fund.

    “Justice Goodluck, in her ruling, affirmed that at this stage, there is no requirement to consider facts before the court; what is needed is to determine if a prima facie case against the accused persons is established. “I am of the view that the proof of evidence suggests elements of forgery and obtaining by false pretences and I, therefore, overrule the objection of the accused persons and hereby grant leave to prosecution to prefer charge against them.”

    “The accused persons were said to have “on or about 3rd day of March, 2011 at Abuja within the Jurisdiction of the High Court of the Federal Capital Territory, Abuja with intent to defraud, conspired to obtain money under false pretence from the Federal Government of Nigeria under the Petroleum Support Fund”.

    “The offence, according to the charge sheet, is contrary to Section 8(a) and punishable under Section 1 (3) of the Advance Fee Fraud and Other Related Offences Act No 14 of 2006.

    “They were to be arraigned on November 26, 2012 but this was scuttled as their counsel, Olisa Agbakoba (SAN), who challenged the application of the prosecution seeking the leave of the court to prefer charges against the accused persons.

    “He argued that the proof of evidence did not disclose any offence against the suspects and urged the court to refuse the application.

    “But, prosecution counsel, Steve Odiase, told the court that the proof of evidence supports the 18-count charge.

    “The case has been adjourned to May 30, 2013 for arraignment and June 11 and 12, 2013 for trial.”

  • Fuel subsidy stays, says Presidency

    Fuel subsidy stays, says Presidency

    THERE is no plan to remove the subsidy on petroleum products, the Presidency said yesterday.

    President Goodluck Jonathan, at a March 19 event in Lagos, spoke of his administration’s plan to remove the subsidy after consultations with Nigerians.

    Jonathan, who spoke at the Nigerian Summit 2013, organised by The Economic Conference, said subsidy of products constitutes a waste of resources that should be channelled elswhere.

    Apparently thinking that the Federal Government may remove the subsidy on April 1, workers’ umbrella bodies – the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) – have scheduled a protest for April 10.

    But, the government said yesterday that there was no such plans. The President’s Special Assistant on Public Affairs, Dr. Doyin Okupe yesterday explained why his boss broached the idea of subsidy removal at the Lagos event.

    According to him, it was only an “intellectual contribution” to discussions by the President at the Summit.

    He said sufficient provision had already been made for fuel subsidy in the 2013 Budget. “Therefore, there is no cause to assume that the President will act against the budget he presented to the National Assembly.”

    Okupe added that the administration would always engaged the various stakeholders in dialogue on issues relating to the oil and gas industry, with the view to reaching consensus on such issues.

    The statement said: “Contrary to speculations in the media and assumption by certain groups within the polity, the Presidency has stated that the removal of oil subsidy is not on the table of the transformation agenda of the President.

    “A statement made by President Jonathan at the recent Economic Summit held in Lagos was a frank, intellectual and well articulated contribution by the President to the discussion on the Nigerian economy and not an indication that government was planning to remove subsidy from petroleum products.

    “The President and this administration are not insensitive to the plight of the Nigerian masses and will continue to pursue and execute policies and programmes that are in the overall interest of majority of Nigerians and that will bring the greatest good to the greatest number of our teeming population.

    “While noting that Nigeria spends about N1 trillion, an equivalent of about 20 per cent of the national budget on fuel subsidy, government remains committed to the welfare of the common man who unfortunately does not benefit optimally from the subsidy regime.

    “Finally, for the avoidance of doubt and at the risk of being repetitive, this administration is not considering the issue of removal of fuel subsidy in the nearest future and will continue to dialogue with all stakeholders with a view to reaching sustainable consensus on all issues involved in the proper management of the nation’s oil and gas industry.”

  • Subsidy removal is PDP agenda

    Subsidy removal is PDP agenda

    SIR: I believe the President does not learn from the past. Most of his actions are unpresidential but he is yet to admit that. Why does the president like to inflict pains on Nigerians deliberately? The subsidy he had promised to remove again is not really responsible for our backwardness but his negligence and nonchalant attitude towards corruption. His decision to remove subsidy again would rather cause unrest.

    The president should know that Nigerians are hungry and unhappy with his policies since he came into power. Nigerians voted for him because of the love they have for him and because of the name he bears. Why is the president now acting conversely to his name? It is surprising that the man who told Nigerians that he had no shoes and Nigerians bought one for him is now the one who pays deaf ears to the cries of the people.

    Removal of subsidy is not what is hindering our developmental process but corruption. There is intense corruption in the system. Our President should cleanse the system by bringing corrupt elements to book. Instead of seeking for ways to punish the subsidy cabals, the president is rather seeking for ways to impoverish Nigerians and enrich the PDP because I believe the subsidy removal is a PDP agenda.

    The party’s agenda has now become the country’s agenda. Nigerians must now be regretting voting President Jonathan into power. The promise he made to surprise his critics in 2013 has begun to manifest; it is written on the wall for Nigerians to read. I hope Nigerians won’t be gullible once again in 2015.

    Halima Hassana Abdulmalik

    IBB University, Lapai, Niger State.

  • Jonathan: Fuel subsidy must go

    Jonathan: Fuel subsidy must go

    Subsidy on petroleum products will go, President Goodluck Jonathan insisted yesterday.

    He said his administration would remove the entire subsidy after consultation with the people.

    Dr. Jonathan spoke in Lagos yesterday at the Nigerian Summit 2013, organised by The Economic Conference.

    The President said the further subsidy of petroleum products constitute waste of resources that should be channelled elsewhere. This, he said, should not be allowed to continue.

    According to him, the main beneficiaries of fuel subsidy are the wealthy, leaving majority of Nigerians to bear the brunt of the consumptive excesses of the well-heeled middle class.

    He promised that the government would engage the public on the modality for the removal of the subsidy.

    “We believe that as we progress, government is going to continue to enlighten Nigerians on the need to remove fuel subsidy,” Jonathan said

    In January 2012, Nigerians rose in unison when the government partially removed the subsidy on petroleum products.

    The protests stalled activities nationwide, especially in the commercial capital, Lagos. Activists and other catagories of Nigerians have continued to vow that they will resist any hike in petroleum products.

    .The President also said he would end importation of rice between 2015 and 2016 as various agricultural initiatives to boost local food production yield fruit.

    According to him, the priority of the government is to achieve food security and unlock the huge potential in agriculture as alternative to the oil and gas sector.

    “We are working hard to boost production of rice, sugar, cassava and oil palm. By 2015 and 2016, we should stop importation of rice into the country. Our aim is to go back to agriculture, not only to export raw produce but to process and add value,” Jonathan said.

    He noted that Nigeria has immense potential to be self-sufficient as well as emerge as a leader in global agricultural produce. The evidence: the vast arable land and favourable climatic conditions adequate for all-year-round farming.

    He outlined a three-pronged approach to tackling insecurity, including development of counter terrorism capacity in conjunction with neighbouring countries, political dialogue with disgruntled groups and an all-inclusive economic framework that provides jobs for the disadvantaged and susceptible segments of the country.

    Jonathan however insisted that political dialogue with disgruntled groups would only become an option if government can put faces to the disgruntled groups.

    The President highlighted the strides that have been achieved under the transformation agenda including the reactivation of the railway services, power sector reform, stable fiscal and monetary environment, creation of enabling political environment for economic development and strengthening of key institutions to ensure accountability and popular participation.

    On Corruption, he said: “Corruption and issues of good Governance are also being vigorously tackled on all fronts. Nigeria was one of the first signatories to the Inter-governmental Action Group against Money Laundering in West Africa (GIABA), and I recently signed the Anti-Money Laundering Act into law.

    “The three tiers of government now meet regularly to review and appraise progress and strategy. The recent dismissal of three judges found to have compromised their offices is an unmistakable signal of zero tolerance for corruption in the judiciary.”

    Former Brazil President, Lula da Silva, at the event, explained that it was time for the African continent to work together to ensure the prosperity of their people instead of depending on aid from foreign countries.

    According to him, Nigeria and Brazil have large potentials that could be harnessed for the growth, development and progress to both countries.

    He said Africa must rise up to the present global challenge in economy, trade and investment and other sectors in order to ensure greater future and enduring prosperity for its people.

    Minister of Finance and Coordinating Minister for the Economy, Dr Ngozi Okonjo-Iweala said Nigeria holds the best prospects for investors in Africa noting that positive effects of various reforms would result in total overhaul of the economy overtime.

    Corporate leaders at the summit said regional integration would enhance the competitiveness of the African economies. Group managing director, First Bank of Nigeria (FBN) Plc, Mr. Bisi Onasanya, said competitive regional integration could only be built on efficient domestic capacity noting that companies would have to fully optimize opportunities in their immediate jurisdictions and develop competitive niches before being able to leverage on regional integration.

    He noted that the globalisation of the financial markets has removed barriers and instituted operating framework for regional financial integration.

    He however stressed the need for financial services regulator in each country to ensure financial discipline and strict regulation as well as foster regional cooperation on financial regulation.

    Vice President, West Africa, Procter & Gamble, Manoj Kumar, said governments need to focus on timely execution of existing policies and provision of supporting infrastructure to enhance regional economic integration.

    According to him, the problem of regional integration and economic development has less to do with paucity of policies but more about the political and institutional wills to implement policies.

    He said provision of adequate infrastructure would reduce turnaround time for trade within the region, reduce costs of products and ensure consumers benefit more from economy of scale and synergies.

    Ministers at the event apart from Mrs Okonjo-Iweala were: Olusegun Aganga (Trade and Investment); Diezani Alison-Madueke (Petroleum); Samsudeen (National Planning); Akinwumi Adesina ( Agriculture) Chinedu Nebo (Power) and Bashir Yuguda (Minister of State for Works).

     

  • Documents used for fuel subsidy ‘fraud’ were verified, says EFCC’s witness

    Documents used for fuel subsidy ‘fraud’ were verified, says EFCC’s witness

    A Lagos State High Court, Ikeja, yesterday heard that some documents used to defraud the Federal Government of about N4.5billion as oil subsidy payments were verified by relevant government agencies.

    The Economic and Financial Crimes Commission (EFCC) is however alleging that most of the documents were forged.

    An official of the Petroleum Products Pricing Regulatory Agency (PPPRA), Mr Victor Shidok, said no fewer than 20 agencies were involved in the verification process.

    He was testifying in the resumed trial of son of former Peoples Democratic Party (PDP) Chairman Ahmadu Ali, Mamman.

    EFCC charged him, Christian Taylor, their company, Nasaman Oil Services and Mr. Seun Ogunbambo with alleged N4.5bn subsidy fraud.

    It alleged that the defendants fraudulently obtained N4.5bn from the Federal Government between January and April last year.

    The money, EFCC said, was for subsidy payments from the Petroleum Support Fund for the purported importation of 30.5million litres of Premium Motor Spirit (PMS) (also known as petrol).

    According to the agency, the defendants did not import the products, but forged a bill of lading and other documents which they used in facilitating the fraud.

    The alleged offences were said to contravene Sections 1(3) of the Advance Fee Fraud and Other Fraud Related Offences Act of 2006.

    The defendants also allegedly violated Sections 467 and 468 of the Criminal Code Laws of Lagos State 2003.

    They pleaded not guilty at their arraignment and were granted bail.

    Shidok, a prosecution witness, admitted under cross examination that documents presented by the defendants before receiving subsidy payments were verified.

    He listed government agencies involved in the verification process as the Department of Petroleum Resources (DPR), the Nigerian Custom Service, the Nigerian Ports Authority (NPA), the Central Bank of Nigeria (CBN) and the Federal Ministry of Finance, among others.

    “Most of the agencies are involved in the verification of oil subsidy claims, and once they are satisfied, payments are made,” he said.

    Shidok said he did not know Ogunbambo in person because PPPRA deals with companies and not individuals.

    He further stated that no transaction relating to oil subsidy matters was made without PPPRA’s knowledge.

    The trial judge, Justice Adeniyi Onigbanjo adjourned further trial till February 21

     

     

  • NNPC withdrew N1.4tr subsidy from crude sales – Report

    NNPC withdrew N1.4tr subsidy from crude sales – Report

    Contrary to the practice where subsidy payments are claimed from the Petroleum Support Fund (PSF) through the Petroleum Product Prices Regulatory Agency (PPPRA) by all qualified companies, the Nigerian National Petroleum Regulatory Corporation (NNPC) allegedly withdrew subsidy payment of N1.40 trillion from domestic crude oil sales proceeds before remittance to the Federation Account from 2009 to 2011.

    This fact was revealed by the Independent Oil and Gas Industry Audit Report, covering 2009 to 2011, put together by the Nigerian Extractive Industries Transparency Initiative (NEITI).

    The reported noted that subsidy payments claimed by NNPC increased by 110 per cent, as the payments rose from N198 billion in 2009 to N416 billion in 2010.

    NEITI chairman, Mr. Ledum Mitee, who presented the report in Abuja on Thursday, said in 2011 alone, the subsidy payments rose to N786 billion and the increase between 2009 and 2011 was 186 per cent.

    His words: “The financial report clearly underlines that contrary to the practice where subsidy payments are claimed from the Petroleum Support Fund (PSF) through PPPRA by all qualified oil marketing companies, that the NNPC draws subsidy payments directly from domestic crude sales proceeds before remittances to the Federation Account. As a result a sum of N1.40 trillion was claimed during the period by NNPC as oil subsidy payments.”

    The report noted that financial flows from the Nigerian Liquified Natural Gas (NLNG) include dividends and repayment of loans of which $4.84 billion was received by the corporation.

    The report confirmed that these amounts have not been remitted neither to the Central Bank of Nigeria /NNPC JP Morgan Account nor the Federation Account.

     

     

  • Subsidy suit

    Subsidy suit

    •We wonder if the suit to cancel subsidy is a ploy supported by the Jonathan administration

    The emergence, in the dying days of last year, of a chary suit asking the court to compel President Goodluck Jonathan to remove fuel subsidy, even when he has promised not to do so in a recent Presidential Chat, has left several public mouths agape. One Stanley Okeke, reportedly described as a ruling People’s Democratic Party (PDP) chieftain in Anambra State had filed the suit in a Federal High Court, in which he listed as defendants the President and two of his ministers: Diezani Alison-Madueke, Minister of Petroleum, and Dr. Ngozi Okonjo-Iweala, the Minister of Finance.

    Okeke is peremptorily asking the court through a 27-paragraph affidavit to which he deposed to determine, among others: Whether the President of the Federal Republic of Nigeria is validly competent to order the removal and or abolish the fuel subsidy scheme in view of the official corruption and abuse of office inherent in the fuel subsidy regime; whether it would be proper and lawful for the President of the Federal Republic of Nigeria to completely remove and abolish the fuel subsidy regime despite the perennial fuel shortages and the attendant long queues in our filling stations; whether it would be proper to re-channel funds meant for fuel subsidy scheme into the building of infrastructural facilities, despite the fact that the 2nd and 3rd defendants, being appointees of the President, by not ensuring a corruption-free subsidy regime, have not failed in their principal duty to Nigerians.

    Equally, he wants the court to make an order directing Okonjo-Iweala to stop further payment of fuel subsidy because, in his words, the payments had been corrupt, illegal and unlawful; and to compel the President to return to the Federation Account “such money earlier appropriated and or approved for the payment of fuel subsidy.”

    The suit has generated serious public opprobrium. Understandably too, because Nigerians were taken through such contentiously deceitful judicial path during the June 12, 1993 presidential election crisis, the public is being wary of this perceived double-faced suit. In 1993, a group, Association for Better Nigeria (ABN), went to court, pretending to be fighting for the country’s democratic interest, but was later discovered to be hatching the machinations of the then ruling military hegemony. What could then be the real motive of Okeke, a staunch member of the president’s party? Could his motive be altruistic or motivated by unseen official goading?

    Nigerians believe that the suit is a ploy to mischievously use the judiciary to remove fuel subsidy. And this is why the Save Nigeria Group (SNG), civil society organisations and notable Nigerians have reportedly criticised it. Mr. Femi Falana, human rights activist and Senior Advocate of Nigeria (SAN), and Dr. Tunji Braithwaite, an elder statesman, among others, reportedly described the suit as a “dubious diversion” that must be aborted.

    We have no doubt that the Nigeria Labour Congress (NLC) will join in fighting any attempt to remove fuel subsidy through the back door. Some civil society organisations have promised to join the suit to oppose the plaintiff and the interests being represented. The NLC should equally offer itself to be joined too. Nigerians should not be punished for the racketeering of fuel smugglers ripping the public till through orchestrated claims of fuel subsidy money.

    We recognise the right of Okeke to approach the court, but there is the urgent need to be convinced about his true intentions; more so since the suit is not that of a class action. Nigerians are better informed and cautious now because of their recent history. We want to know, just as the public is craving to know, whether Okeke’s suit is inspired by love for the people or love for government, or even love for self?

     

  • Subsidy looters must be punished, says NLC

    Subsidy looters must be punished, says NLC

    The Nigeria Labour Congress (NLC) has urged the Federal Government to ensure those who looted funds meant for subsidising petrol are punished this year.

    It also urged the government to curb the rising unemployment in the country.

    In a statement by its president, Abdulwahed Omar, labour said it would not augur well for the citizenry for unemployment to continue to increase.

    The NLC said: “Government will be unfair to the Nigerian people if they fail to expeditiously prosecute those who have stolen so much, and caused so much trauma and death to the people. We hold the view that no one is above the law in any decent society and if our government is committed to the enthronement of good governance and a corrupt-free society, they must get the named beneficiaries of the oil subsidy scam to not only refund all the money they have stolen, but also serve appropriate jail terms. This, will be the only acceptable condition for continuous industrial harmony by workers and the Nigerian people.”

    It said the claim of economic growth by the government has not translated to improvement in the lives of Nigerians.

    The statement reads: “On behalf of Nigerian workers, it is our pleasure to welcome Nigerians to the year 2013. As a New Year, we believe that it holds new hopes and aspirations for the Nigerian nation. However, given the disturbing trend in the economy and governance in the past year, which were characterised by incessant job losses and unemployment, insecurity, and corruption, as well as unparalleled impunity, the sustenance of good governance would require re-srategising and more commitment to a peoples-focused and oriented policy thrust in the interest of the Nigerian poor.

    “To workers and the Nigerian people, it would entail a demand, ever than before, our collective will of struggle and patriotism, to check this apparent drift in the affairs of state in the interest of working families and the Nigerian people.

    “The economy, during the year 2012, was characterised by a number of maladies, with dire consequences for workers and the Nigerian people. In particular, the crisis of unemployment continues to be the greatest of these. Official statistics puts the unemployment rate at above 24 percent. As alarming as this would seem, it actually disguises the enormity of the unemployment problem given the huge pool of disguised unemployment and underemployment. The incidence of unemployment among the youths is even more alarming. Though official figures indicate over 40 percent of them as unemployed, the reality is that about 60% of youths remain unemployed. On average, graduates of the nation’s universities and polytechnics continue to remain unemployed four years after discharge from the mandatory NYSC scheme. Other categories of less qualified youths have been roaming the streets in millions without gainful employment. Thus, resigning to a life of perpetual destitution and despondency in a country blessed with so much resources and potentials.

    “The underlying inflation in the economy has also continued to erode the purchasing power of workers’ incomes, making the N18,000 Minimum Wage largely a poverty wage. Aggregate inflation, which officially stands at 11.7 percent in the third quarter of the year, might be misleading as the fuel price hike in January, the increase in electricity tariffs and the floods in the third quarter of the year that have been major culprits driving inflation, have largely disempowered working families.

    “Consequent upon the above, poverty remains endemic as increasing numbers of families and households are unable to meet their basic needs. To compound this situation, thousands of families displaced by the massive floods in various parts of the country continue to live in refugee camps awaiting resettlement.

    “This abysmal economic outlook is prevailing in the face of official aggregate of the economy touted to experience respectable growth. The growth rate of GDP is flaunted to average about 6.5 percent based on data for the first three quarters of the year. While this is lower than the corresponding rate for 2011, it is way above the global growth rates for comparable national economies.

    “However, our concern about this respectable economic growth is that it does not translate into industrial development and better life for the Nigerian people. The economy continues to experience incessant factory closures, and with no visible industrial policy, has led to continuous informalisation of work and de-industrialisation, unemployment has continued unabated, and hyper-inflationary pressure, which has been most severe in the food, energy and transport sub sectors have impoverished majority of Nigerians.

    “Rather than throw up figures, which the World Bank has recently alleged are largely obsolete in Africa, the challenge should be to promote employment generating growth so as to break away from the malady of jobless growth.”

     

     

     

     

  • ‘Subsidy thieves not behind minister’s mum kidnap’

    Controversy has continued to trail the release of the mother of Finance Minister and Coordinating Minister of the Economy, Prof Ngozi Okonjo–Iweala.

    Commissioner of Police in Delta State Ikechukwu Aduba yesterday contradicted the minister, who had said that those against the oil subsidy probe were behind her mother’s abduction.

    Prof Kamene Okonjo was abducted from her husband’s palace at Ogwashi-Uku, Aniocha South Local Government on December 9 by a 10-man gang. She was released six days after.

    According to Aduba, the information leading to the killing of the alleged master- mind was credible and genuine.

    The 35 year-old kidnap kingpin, Nwazor Nwose aka Bolaji, allegedly involved in the abduction, was killed in Asaba, the state capital, after a gun battle with security operatives.

    He said the police, acting on a tip-off, tracked the suspect to his hideout in Asaba.

    Aduba said the suspects arrested would be arraigned in court next week, stressing that the police was closing in on three other accomplices residing in Anambra State.

    He identified the three as Nonso, Chiboy and Chukwura.

    His words: “There is a raging controversy over the true circumstances surrounding the abduction of the mother of the Finance Minister.

    “We try to be careful in doing our job.

    “But we stand by our earlier position that the mastermind involved in the kidnap of Prof Okonjo is credible and genuine.

    “The mastermind is a notorious criminal whose death has brought relief to Asaba residents. We stand by this position.”

     

  • Subsidy blackmail

    Subsidy blackmail

    •Request for N161.6bn for subsidy supplementary budget is frivolous

     

    PRESIDENT Goodluck Jonathan, through a memo read to both Houses of the National Assembly is requesting for N161.6 billion naira ($1 billion) supplementary budget to defray fuel subsidy debts purportedly owed petroleum products importers for year ending 2012.

    This extra-budgetary request takes total spending on fuel subsidy this year to over 1 trillion naira, about a fifth of the total federal budget.

    The 2012 budget reportedly set aside N888.1 billion for fuel subsidy, which the government claimed it had nearly exhausted, using that as basis for the latest demand for extra N161.6 billion. President Jonathan puts it thus: “Given the need to maintain a steady flow of petroleum products, especially in the run up to the festive season, it is my hope that the distinguished senators will kindly accord this request their … approval.”

    From the foregoing, the government could justifiably be accused of using subtle blackmail on the National Assembly. The request, if indeed genuine, ought to have been made before now because the subsidy payments balance sheet is in government’s custody. Therefore, it would be pertinent for it to tell the nation at what point it occurred to it that the approved sum would not be sufficient.

    Secondly, the fact that this administration waited till this festive period before making this claim, knowing full well the importance of December, shows that it was playing games with the subsidy ruse. For no tangible reason, fuel scarcity/shortages have been a recurring decimal since January. Yet, Nigeria is Africa’s top oil producer, with mostly moribund refineries, thus forcing it to importabout 80 percent of its refined fuel needs.

    There is too much puzzle in the subsidy schedule since it has turned out to be a conduit for uninhibited state theft. As at 2009, fuel subsidy was put at about N600billion and we doubt if any economic sense could be made of the trillions of naira astronomical increment of the subsidy in 2011, an election year, and this year?

    No doubt, there is more to it than meets the eye in all these subsidy transactions. Could it be a ploy by government to deceive Nigerians into believing that there was little or no fraud in the subsidy payments in the past? But the government would also have to tell us what economic activities made Nigerians consume so much fuel last year, making us pay far more than what was spent on subsidy in three years (2006-2008) in 2011 alone. With the numerous indicting reports of several committees against the government and some fuel importers, it seems this administration is now at a crossroads.

    Yet, the only thing that can end the fraud is not for the government to cover it or coerce Nigerians to pay for its ineptitude and corruption; but to build more refineries and then hand over to private investors to operate. We wonder why the government is shying away from this. Is it to sustain the subsidy fraud, or what?

    We are unhappy that the Senate has so hastily fallen for the blackmail that fuel would be scarce during the festive season if the additional N161.6billion was not approved and had thus given its nod to the proposal. The House of Representatives should not toe this line; rather, it should look critically into the matter and throw it out, if necessary.

    We call on the civil society groups and the citizenry to stay alert and mount pressure on the government to build more refineries. It was the heat put on President Jonathan in January when he removed fuel subsidy that brought the negligible reprieve that is now being enjoyed. The proposed N161.6billionn supplementary budget request is a pointer that the entire fuel subsidy is a huge racket.