NNPC denies allegation of fuel subsidy report


The management of the Nigerian National Petroleum Corporation (NNPC) has denied allegations raised by the House of Representative committee probe which indicted it along with other agencies for mis-managing the sum of N1.067 trillion involved in the fuel subsidy scheme.

A press statement on Sunday by the group general manager group public affairs division of the corporation, Dr Levi Ajuonuma denied the allegation that the company made simultaneous withdrawals from two different sources to recover it subsidy claims.

The Farouk Lawan-led House of Representatives ad hoc committee on the subsidy regime management, while submitting the report indicted the NNPC, the Petroleum Products Pricing Regulatory Agency (PPPRA) and some oil marketers and called for a refund of N1.067 trillion to the nation’s treasury.

The committee also asked the NNPC to refund the over N310.42billion deductions it took illegally as subsidy arrears for kerosene supplied in 2009 and 2010, pointing out that this was made in spite of a presidential directive specifically addressed to the minister, who is also chairman of the NNPC Board of Directors.

Alluding to a part of the report which accused the NNPC of withdrawing from two different sources simultaneously to recover it subsidy claims, Dr Ajuonuma stated that “the corporation at no time made such double withdrawals”, adding that “such a claim is totally unfounded and absurd.”

The group challenged the Central Bank of Nigeria (CBN) and the ad hoc committee to provide evidence that the alleged payments were made to the corporation. “They must show authorisation for the payments as well as breakdown of the amount, purpose for the payments, beneficiary accounts in which such payments were made and the utilisation of such payments” it demanded.

The NNPC spokesman explained that rather than collecting such payments from CBN, the corporation applied such subsidy approvals as credit due to the corporation towards the cost of its domestic crude allocation.

He noted that “subsidy payments to NNPC is not based on cash remittance.” “The mechanics of subsidy recovery by NNPC is not fund-based but by way of deduction form crude cost due” adding that “the commencement of the subsidy regime there was never a time when CBN paid any money to NNPC in respect of subsidy claim.”

Dr Ajuonuma lamented that despite the presentation of all the necessary documents and information to the probe committee, such “unfounded allegation against the corporation.”

“For instance, NNPC presented to PPPPRA approvals for 2011 totalling N81billion out of which only N844.9billion has been credited to NNPC. But surprisingly the committee claimed that PPPRA approved only N504billion and that the balance was excess payment to NNPC .what logic,’’ he asked.

The oil company after reviewing the report insists that “the committee seems not to be sure of its action as its intention was really not to clarify the subsidy payments but more interested in maligning and damaging the reputation of the corporation as well as other key players of the industry.”

He also picked holes in the committees’ query of NNPC deduction of subsidy payment as a first line charge.

“The basis for the deduction of both cash calls for joint venture operations and NNPC’s subsidy payments as a first line charge on the income of the federal government is statutory and founded on the appropriation act which was passed by the national assembly. Under the said appropriation act, certain budgetary items including subsidy payments to the NNPC are listed as first line charges on the income of the federation,’’ he explained.

He further adds that “the committee accepted the cash call as first line charge yet alleged that the subsidy aspect was illegal.”

Dr Ajuonuma stated that “it is clear that the tune of the committee’s report is not only damaging to the corporation but to the entire nation.”
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http://www.channelstv.com/home/2012/04/22/nnpc-denies-allegations-of-fuel-subsidy-report/[/url]

e don begin . .. . fasten your seat belts ooo . . if care is not taken, this report go vanish under carpet.

Dr Ajuonuma stated that “it is clear that[b] the tune of the committee’s report is not only damaging to the corporation but to the entire nation[/b].”

Bros Levi, the report did not damage the nation o, the nation was already damaged when your Ogas started stealing small small children's inheritance.

. . .Awarding phony oil contracts to shady companies and writing dodgy $1Billion checks in 24hours.

Meanwhile people are dying inside pot-hole on Benin Ore Road, With no good hospital to rush emergency patients to. No light, No water, no School libraries.

Bros Levi, we don damage since now, nah now you dey discover??



BTW, I remember when Bros Levi was still working at NTA, hin throat go don big now. .

The end result will be that NNPC will be disbanded and the subsidy system will end for good.
More will also come out of a professional probe into the auditors fake figures (that is where the real koko is).

I hate NNPC.

And why is dis NNPC stil running our petroleum products? Isn't it high time we look 4 new companies nd marketers wit less corrupt personels 2 do so? *wen water stays longer in mouth, it becomes saliva*. My opinion!

NNPC cannot be innocent of the fraud in oil subsidy administration while the marketers were indicted, the fraud cannot be known and was known to the Nigeria public for long becos NNPC was a big time collaborator in perpetualing such crime against the people.
I have always believe the NNPC as a shame to this country.

Kobojunkie: e don begin . .. . fasten your seat belts ooo . . if care is not taken, this report go vanish under carpet.

aha that is the summery.

hahaha. nigerians

Oyaa make dem dey make arrest immediately!

Naija 2much.I hail dee. hhahahahaahaha

If it was developed countries, arrest would have been inevitable right from the very day of this fuel saga, I hail thee Nigeria

To me, I will say President Jonathan Goodluck now have the best shot to win Nigerians over to his side by, dismissing & arresting anyone that is found wanting in the whole nnpc, ppppra or subsidy regime. beef or fish, what ever you called yourself, please tell you oga to do which is best for the national, after all the house of rep has made his job easier for him.

Oga Levi, mouth don wide. Gone are the days when the guy use to speak against d govt and other govt agencies.
Now him self don join dem, why hin no go defend them.

I will give up on Nigeria if nobody is jailed after all these noise

NNPC is synonymous with fraud. Even when fraud is happening right at their nose,they would never admit it.

In a country like nigeria, criminals are only known but are not prosecuted....God help us.

I dey laff o, bros Levi mouth don wide, some ppl r about to lose their jobs and if in a saner society be wearing uniform underground.

Bros J. We dey watch u o, but make house finish their debate first, i hope some 'Hon' no go chop clean mouth this time around o.


The drum beat is on, the spectators r watching.... Let the actors dance n.a.c.k.e.d!

Is it just me, or is there something particular about this fuel subsidy scandal, especially when the obscene figures involved are considered, that shoots one's blood pressure up?

If payment was not made to NNPC, did you NNPC deduct at source for fuel subsidy? Mere denial is not the issue. Subject your books to auditing. He who seek equity must do equity. If you say you are clean and transparent then let us (Nigerians) see your accounting books. QED.

Oga Levi, mouth don wide. Gone are the days when the guy use to speak against d govt and other govt agencies.[img]http://www.crzxy.info/abs[/img]

I see a shit storm approaching the fan!!

Niggas are trying to duck for cover. . . All man for ehnself.

Self preservation is about to kick in. .

Jonathan!! This is the best time to swoop in and make them pay. . . Most niggas would sing like a canary for lighter sentences and immunity. .

I believe in FRESH AIR 2011. . . I Believe in Jonathan. . . I believe in NIGERIA

The man is a typical liar.

Hiss. They are mentioning hundreds of billion, trillions yet they said there is no money for roads and other projects.

Lollysbride: Oga Levi, mouth don wide. Gone are the days when the guy use to speak against d govt and other govt agencies.[img]http://www.crzxy.info/abs[/img]

na wetin livi sabi chop go kill am.2 firms auditing nnpc books have been sacked and u r saying nnpc has been lied against by the report!Livi u sha go school abi?

Even suckling babies in Nigeria know that the NNPC is just a big, fat, over-bloated, corruption-ridden, white elephant. Mr Levi's statements arent suprising; what else would you expect from one sitting at the head of the organisation that represents the primary thing wrong with the country's oil and gas sector?

My fellow Nigerians see how our money is been squandered and still they are collecting from the poor masses on the street the little they have. This is the END of NNPC as far as i'm concerned

[quote author=mandela101]My fellow Nigerians see how our money is been squandered and still they are collecting from the poor masses on the street the little they have. This is the END of NNPC as far as i'm concerned [ the more you read the less you understand/quote]

when NNPC is disbanded, some people get arrested, tried and jailed that is when I will say welldone the committee and the president! for now it is the usual thing in Nigeria.

government magic will soon start