PDP Governors Reject N548 Billion Subsidy Payment Claim by NNPC

Strategic Insights -

The Peoples Democratic Party (PDP) Governors' Forum has expressed strong opposition to the Nigerian National Petroleum Corporation's (NNPC) claim of paying over N548 billion as petroleum subsidy in 2022. At a meeting in Abia State, the governors, who were joined by the deputy governor of Taraba State, rejected the claim, citing that it was unconstitutional for NNPC to pay money into the federation account at its discretion. The governors also accused the NNPC of deducting N8.33 billion monthly for refinery rehabilitation, despite no refineries being operational.

Key Takeaways:

  • The PDP Governors' Forum rejected NNPC's claim of paying over N548 billion as petroleum subsidy in 2022, citing that it was unconstitutional for NNPC to pay money into the federation account at its discretion.
  • The governors accused NNPC of deducting N8.33 billion monthly for refinery rehabilitation, despite no refineries being operational.
  • The NNPC claimed to have paid over N1 trillion as petroleum subsidy in 2021 alone.
  • The governors believe that the leakages in NNPC were made possible because President Muhammadu Buhari doubles as Petroleum Minister.
  • The governors emphasized the urgent need for the separation of the President's office from the Petroleum Ministry.
  • 18 federal agencies, including the Central Bank of Nigeria and the Economic and Financial Crimes Commission, were accused of not remitting revenue to the Federal Account Allocation Committee (FAAC).
  • The governors criticized the Federal Inland Revenue Service (FIRS) and the Customs for collecting high costs of collection, with FIRS taking N15.4 billion and Customs taking N8.4 billion in March 2022.

Statistics:

  • N548 billion: Amount claimed by NNPC as petroleum subsidy in March and April 2022.
  • N1 trillion: Amount alleged to have been paid by NNPC as petroleum subsidy in 2021.
  • N220 billion: Amount deducted as oil subsidy in March 2022.
  • N328 billion: Amount promised to be deducted in April 2022.
  • N8.33 billion: Monthly amount deducted by NNPC for refinery rehabilitation.
  • N15.4 billion: Cost of collection taken by FIRS in March 2022.
  • N8.4 billion: Cost of collection taken by Customs in March 2022.

Sources:

  • (https://www.premiumtimesng.com/regional/northern-regional/487575-pdp-governors-reject-nncps-548-billion-subsidy-payment-claim-allnews.Html)
  • (https://en.wikipedia.org/wiki/Peoples_Democratic_Party_(Nigeria))
  • (https://www.nnpcgroup.com/Pages/Home.aspx)