According to Col. Hameed Ali (retired), Comptroller-General of the Nigeria Customs Service, the Nigerian National Petroleum Company Limited (previously known as the Nigerian National Petroleum Corporation) cannot justify the amount of Premium Motor Spirit (petrol) being consumed in the nation every day to support the over N6.34tn subsidy payment on the good each year.
In his presentation to the House of Representatives Committee on Finance on Thursday in Abuja during the ongoing hearing on the proposed 2023–2025 Medium Term Expenditure Framework and Fiscal Strategy Paper, Ali claimed that the NNPC could not scientifically support the 98 million liters/day usage it was purporting, asserting that the country’s oil company was providing an ample supply of 38 million liters of PMS daily.
The deficit for the fiscal year 2023 is expected to range between N11.30 trillion and N12.41 trillion, according to the federal government’s proposed budget. Zainab Ahmed, the minister of finance, budget, and national planning, testified before the committee earlier on Monday and expressed concern that the government might not be able to fund treasury-funded capital projects in the coming year, in part because of declining tax revenues and the annual payment of N6.34 trillion in gasoline subsidies.
The NNPC’s allegations of subsidies, however, were criticized by the NCS boss, who stated, “I remember that last year we spoke about this. Unfortunately, this year, we are talking about subsidy again. The over N11tn we are going to take as debt, more than half of it is going for subsidy. The issue is not about smuggling of petroleum products. I have always argued this with NNPC.”
Saidu Abdullahi, the committee’s deputy chairman, who oversaw the session, bemoaned the diversion of subsidy funds into private wallets when they were intended for capital projects.
According to the Customs CG, the Service would reach its income projections of N2.272 trillion for 2022, N2.873 trillion for 2023, N3.540 trillion for 2024, and N3.752 trillion for 2025.
Ali, on the other hand, clarified that the NCS wrote to the Presidency requesting virement of N4 billion to cover outstanding legal costs, adding that a lack of finances might force the Service to pay as much as N20 billion for a suit of N3 billion for default.
The legislators also mandated that the CG of the NCS ensure the remittance of 80% of the operating surplus to the government coffers in accordance with the Finance Act. They also stated that the Customs should propose changes to the current law with a view to addressing.
- Tags: #Customs, #nigeriancustoms, #NNPC
