A dictionary-oriented website, www.thefreedictionary.com defines a Kleptomaniac from a psychiatric perspective as a “Strong impulse to steal, especially when there is no obvious motivation.” Regrettably, given the mind-boggling trending news that the Nigerian National Petroleum Company Limited (NNPCL) has said that there have not been payments for subsidy on Premium Motor Spirit (PMS), otherwise called petrol or fuel to marketers since January 2016, it will not be derogatory to, in this context, call anyone behind the stealing of Fuel Subsidy Fund a kleptomaniac.
According to the NNPCL, in its “Petrol Subsidy Fact Sheet” posted on its official Twitter handle, “No petrol subsidy payments made to marketers since January 2016. NNPC Ltd to reconcile subsidy deductions with the federation.
“NNPC Ltd pays suppliers either cash or delivers equal value of crude oil volumes as settlements. Crude oil swap deals will phase out.
“No marketers are paid petrol subsidy by NNPC Ltd as marketers buy below cost price. Marketers will now pay the cost price as determined by the market. Suppliers import products on commercial terms for NNPCL Ltd on the back of their credit abilities. NNPVL Ltd will no longer be the sole importer of petroleum products.
Given the foregoing stinking disclosure, one may not be considered to be a mischievous person or a comedian when caught weeping in the marketplace over the humongous fraud as deciphered from the tweet which has expectedly culminated into a viral news reports in major news platforms. If the leadership of the NNPCL has rightly hit the nail on its head, particularly as it is an authoritative and credible source on the issue of petroleum subsidy, it is then not an exaggeration to say that the tweet speaks volumes.
In fact, the reason why one would not be called a mischievous person or a comedian for weeping in the marketplace over the startling revelation is that the prodigious petroleum subsidy that might have been stolen by kleptomaniacs over the years in the oil and gas sector, when calculated from 2016 till date would be earthshaking.
Without resorting to a campaign of calumny in this context, there is no overstating the fact that kleptomaniacs in the system have kept squandering virtually all the funds accumulated from fuel subsidy over the years to the detriment of those it was aimed at alleviating their collective plight as the gain therefrom was ab initio aimed at making the price of petrol cheaper and affordable by everyone that has a need for the product.
To be fair to leaders that are charged with the responsibility of managing the allocation of the petroleum subsidy, it is expedient to recall that the administration of former President Muhammadu Buhari did not make any budgetary provision for subsidies in 2016, leading to no subsidy payment for the year, thus being the first significant success in revamping the subsidy regime, and as a result, fuel sold for N145/litre in 2016 due to the subsidy removal in that year.
It will also be recalled that Dr. Ibe Kachikwu, the then Minister of State for Petroleum Resources, had argued that the removal of the fuel subsidy in 2016 was due to the fact that there were no budgetary provisions for its payment in the year’s appropriations.
The Vice President, Yemi Osinbajo, had also noted that the country saved not less than N15.4 billion monthly in 2016 from not paying fuel subsidies. However, in 2017, the government paid a fuel subsidy, recording it as under-recovery in the books of the NNPC.
While the government did not officially explain why it re-introduced fuel subsidies after jacking up fuel prices in 2016, a review of crude oil prices may offer an explanation as to why the government made a U-turn and started paying subsidy (under-recovery) in 2017.
Again, it was gathered that the average crude oil price in 2016 stood at $40.76/ barrel but increased up to an average of $52.51 in 2017 (due to more demand than available crude oil supply), meaning that if the government were to keep up with deregulation, it would have had to increase fuel price again from N145 it placed it in 2016.
This is as deregulation works with market forces and with the price of crude oil determining the final price of refined petroleum, another increment would have been in the offing in 2017 if there were no subsidy payment.
Nigeria’s earlier increment of the pump price of petroleum to N145 in 2016 was greeted with condemnation in some quarters. Popular rights activist and lawyer, Femi Falana, during the period under reference in this context, described the development as insensitive.
“In view of the illegality, insensitivity, and immorality of the price increase, the federal government should cancel it, revert to the status quo and consult widely with all relevant stakeholders in the society,” he said in a statement.
Against the foregoing backdrop, it is expedient for all Nigerians to support the leadership of the Socio-Economic Rights and Accountability Project (SERAP) in its call on Tinubu to probe the alleged mismanagement of $2.1b, N3.1tr Fuel, Subsidy Funds.
As gathered from the Nigerian Guardian newspaper in its June 5, 2023 edition, in one of its news reports anchored on the headline, “SERAP Tasks Tinubu On Probe Of Alleged Mismanaged $2.1b, N3.1tr Fuel, Subsidy Funds”, SERAP urged President Bola Ahmed Tinubu to urgently investigate the allegations that $2.1 billion and N3.1 trillion oil revenue and fuel subsidy payment are unaccounted for between 2016 and 2019, as documented by the office of the Auditor-General of the Federation.
It implored the president to name and shame anyone behind the alleged systemic corruption in the use of oil funds and mismanagement of fuel subsidy, in addition to prosecution and total recovery of proceeds of crimes, and in the same vein pleaded with him to promptly, thoroughly, independently, transparently and effectively probe all payments made as fuel subsidy by successive administrations since the return of democracy in 1999 and use recovered proceeds of crime as palliatives for subsidy removal.
“In a letter dated June 3, 2023, and signed by its deputy director, Kolawole Oluwadare, SERAP said there is a legitimate public interest in ensuring justice and accountability for the allegation in the interest of economic growth and accountability.
“The organization said: “Your government should urgently act to follow due process of law in any policy to remove fuel subsidy, ensure that suspected perpetrators of these crimes against Nigerians are brought to justice and full recovery of any missing public funds.
It stated: “The Auditor-General fears that the crude valued at N55,891,009,960.63 may have been diverted. “The NNPCL in 2019 also failed to remit N1,955,354,671,268.66 and N55,157,702,848.74 of generated revenues into the Federation Account, contrary to Section 162 (1) of the Nigerian Constitution 1999 (as amended). The Auditor-General fears that the money may have been diverted.
“The NNPCL also failed to account for N4,572,844,962.25 of ‘domestic gas receipts’, thereby ‘reducing the distributable revenue in the Federation account’. The Auditor-General wants the money remitted.
“The NNPCL also in 2019 failed to account for 22,929.84 litres of PMS pumped from refineries and valued at N7,056,137,180.00. The Auditor-General fears that the PMS may have been diverted.
“The NNPC also ‘illegally classified’ 239,800 barrels of crude oil valued at N5,498,045,220 as ‘crude oil losses’. The Auditor-General fears that the crude oil may have been diverted.” The group advised Tinubu to prioritize accountability and good governance.
In fact, at this juncture, it is expedient to say that SERAP’s call came at the right time, particularly as was made to a president that has been busy cleaning the Augean stable since the assumption of office on May 29, 2023. Given the foregoing, this writer is in this piece literarily adding his voice to that of SERAP to urge Mr. President to get to the root of the matter and do the needful.
