Kunle Kalejaye 14 October 2015, Sweetcrude, Lagos – The Nigerian Extractive Industries Transparency Initiative, NEITI, says its audit reports show that the Federal Government spent N4 trillion on fuel subsidy payments in seven years, 2006 to 2012.
Revealing this at a one-day forum on fuel subsidy in Lagos, NEITI’s Director of Communications, Mr. Orji Ogbonnaya Orji, said the audit reports showed that total subsidy payments between 2006-2012 stood at N4 trillion.
According to him, in 2006, N219.72 billion was spent on subsidy while payments for 2007 was N236.64 billion; 2008 (N360.18 billion), 2009 (N198.110 billion), 2010 (N416.45 billion), 2011 (N1.9 trillion) and 2012 (690 billion.
“The subsidy payments in 2012, N690 billion when compare to N1.9 trillion paid in 2011 shows a 29% reduction. This reduction may be due to the January 2012 national protest against oil subsidy”, Mr. Orji said.
The NEITI communications director stated that the transparency initiative audit also revealed that the Nigerian National Petroleum Corporation, NNPC, had claimed that a total sum of N1.7 trillion was paid as subsidy between 2006-2012.
”NNPC deducted these sum directly from domestic crude oil proceeds before remitting the balance to the Federation account.
“Subsidy deductions by NNPC increased by 110% from 198 billion in 2009 to N416 billion in 2010, and 89% in 2011 (N416 billion to N786 billion 89%).
“The increase between 2009 and 2011 alone was 186% from N198 billion to N786 billion,” he maintained.
He stressed that government needed to conduct an in-depth investigation into the management of subsidy payments; ensure NNPC follows due process in the Petrol Subsidy Fund, PSF, scheme; deregulate the downstream sector; ensure refineries work to their full capacity; build new refineries; and gradually phase out oil subsidy.