Kerosene subsidy a scam — SANUSI

ABUJA —The Governor of the Central Bank of
Nigeria, CBN, Mr. Sanusi Lamido Sanusi
Has described the kerosene subsidy claim
by NNPC as a scam saying that claims by the
Nigerian National Petroleum Corporation,
NNPC, of spending money on kerosene subsidy
are not credible.
Sanusi made the declaration 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.
He said the burden of proof was now on the
NNPC to substantiate that the $20 billion
unremitted either did not belong to the
Federation or was legally and constitutionally
spent.
According to the CBN Governor, the NNPC, by
paying kerosene subsidy, confessed to a number
of serious infractions. Referring to the data
provided by the National Bureau of Statistics,
NBS, he stressed that kerosene was not a
subsidisd product, adding that the so-called
subsidy was rent generated for the benefit of
those in the kerosene business.
Producing evidence that former President
Yar’Adua had issued a presidential directive
eliminating subsidy payment on kerosene as
from July 2009, Sanusi said the huge losses
inflicted on the Federation Account have not
been appropriated.
Speaking further, the CBN Governor said the
burden of proof was on the NNPC to show
where it obtained authorisation to purchase
kerosene at N150/litre from Federation funds
and sell at about N40/litre, knowing full well
that the product sells in the market at N170-
N220/litre.
Citing records of the Nigeria Ports Authority,
NPA, Sanusi said the records suggest that the
NNPC imports about four to six vessels of
kerosene a month. Similarly, he said based on
industry sources, the Federation Account loses
$100 million monthly due to racketeering in the
industry.