A Review of the Nigerian Energy Industry

‘Only verified claims from certified marketers are paid’ -Okonjo Iweala

Ngozi-Okonjo-Iweala16 November 2013, Abuja – In 2011, the Federal Ministry of Finance working under the Coordinating Minister for the Economy, CME, with Debt Management Office, DMO, and Petroleum Products Pricing and Regulatory Agency, PPPRA, instituted new processes and procedures to curb fraud and inefficiency. The ministry makes payments based on verified batched claims sent by PPPRA to DMO which verifies them again in a new process put in place before final payment.

As a result, the payments have declined from N2.2 trillion in 2011 to N950 billion in 2012, much of this due to subsidy phase down but a good part also due to better verification processes.

The Federal Ministry of Finance has thus far this year paid N287 billion in verified claims to marketers. The details have been published in our regular updates in the newspapers and magazines.

The ministry of finance is getting ready to make additional payments to marketers. Marketers are also making claims for interest and foreign exchange differentials as provided for in the PPPRA template, which have not been paid, and we are verifying those as well.

As the public has been made aware, no marketer involved in questionable deals is paid. All fraudulent marketers identified by the Aig-Imoukhuede committee had their names published in the media. A few were subsequently sent by the committee to the Serious Fraud Office for further investigation and were later cleared based on their defence and a re-examination of the evidence. These joined the list of cleared marketers. The others remain blacklisted.
*Press statement, Federal Ministry of Finance

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