The Governor of the Central Bank of Nigeria, CBN, Mr. Sanusi Lamido Sanusi has dismissed claims by the Nigeria National Petroleum Corporation, NNPC of spending money on kerosene subsidy which he calls a scam.
Sanusi said this yesterday at the resumed Senate Investigative Public Hearing on un-remitted oil revenue in Abuja, stressing that the sum of $20 billion was un-remitted to the Federation Account by the NNPC, between January 2012 and July 2013.
According to him, the NNPC has to prove that the $20 billion unremitted either did not belong to the Federation or was legally and constitutionally spent.
The CBN Governor noted that the NNPC, by paying kerosene subsidy, confessed to a number of serious infractions. He backed his claim with data provided by the National Bureau of Statistics, NBS, stressing that kerosene was not a subsidised product, adding that the so-called subsidy was rent generated for the benefit of those in the kerosene business.
Sanusi also produced evidence of a presidential directive eliminating subsidy payment on kerosene as from July 2009, issued by former President Umar Musa Yar’Adua. The huge losses inflicted on the Federation Account have not been appropriated, according to the governor.
Sanusi asked the NNPC to also prove to them that it obtained authorisation to purchase kerosene at N150/litre from Federation funds and sell at about N40/litre, despite the widely known fact that the product sells in the market at N170-N220/litre.
Sanusi also said the records suggest that the NNPC imports about four to six vessels of kerosene a month, according to Nigeria Ports Authority, NPA records.
The governor also said based on industry sources, the Federation Account loses $100 million monthly due to racketeering in the industry.