The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) has said that the Nigeria National Petroleum Company Limited (NNPCL) withheld the sum of N8.480 trillion from the Federation Account between January last year and May 2023.
The Commission’s chairman, Mr. Mohammed Shehu in a statement in Abuja, said that the subsidy regime was not transparent stating that the decision to end subsidy was the best for the nation as the sum remained unreconciled.
According to Shehu, “It is saddening to note that since 1st January, 2022 to date, the Nigeria National Petroleum Company Limited (NNPCL) has not been contributing to the Federation Account due to the claimed subsidy payments.
“The total amount withheld by the NNPCL as claimed subsidies for this period amounted to N8,480,204,553,608.13 as reported by the Office of the Accountant General of the Federation(OAGF) which is yet to be reconciled by the RMAFC, OAGF, and NNPCL.
“In a situation whereby the records of subsidy transactions are not transparent and crude oil prices are being determined globally, it would be unwise to sustain the phantom payments of subsidy at the detriment of other critical sectors of the economy thus making its sustainability difficult for the Government.”
He added that the removal of fuel subsidies would eliminate the alleged uncertainty surrounding the subsidy regime and free funds for the execution of critical national development and human capital enhancement projects.
The Chairman described the 29th May, 2023 pronouncement of the removal of fuel subsidy by President Bola Tinubu at his inaugural speech, due to the non-budgetary provision for subsidy as a master stroke that broke the subsidy jinx.
According to him, President Tinubu should take action against all the economic saboteurs who have contributed to the nation’s economic woes in accordance with the extant laws of the federation.
He also charged the president to urgently put in place measures to ameliorate the sufferings caused by the subsidy removal.
Shehu expressed optimism that when the Dangote Refinery becomes operational, the country will witness a glorious dawn in hassle-free oil production and distribution in the absence of a subsidy regime.
