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Nigeria’s Senate deepens fuel subsidy probe
ABUJA, Nov 6, 2018 (BSS/AFP) – Nigeria’s Senate said Tuesday it was
investigating claims that the state oil company illegally took more than $1
billion from natural gas proceeds to fund fuel subsidy payments.
Despite being Africa’s largest crude producer, Nigeria relies on fuel
imports to meet domestic demand because of its dilapidated refineries.
The imported petrol is subsidised by the government in an increasingly
opaque scheme that has been described as a sprawling web of patronage and
mismanagement.
In October, the Senate said it was probing spending by the National
Nigerian Petroleum Corporation (NNPC) of some $3.5 billion in import
subsidies which were not approved by parliament.
“An adhoc committee was set up to investigate the $3.5 billion NNPC subsidy
use. The particular issue of $1.05 billion that Nigeria took from NLNG
(Nigerian Liquefied Natural Gas company) came up,” said Senate Leader Ahmad
Lawan in a statement posted to the Senate’s official Twitter account.
The NNPC has said in the past that high oil prices and fuel smuggling to
bordering West African countries were driving up fuel subsidy payments.
But there are growing fears that the ballooning subsidy bill could be due
to corruption.
BSS/AFP/RY/1950 hrs