PPPRA, NNPC probe reveals lack of documentation transparency

Farouk Lawan

PPPRA, NNPC probe reveals lack of documentation transparency
Anunlika Menanya, Lagos

The ongoing probe into the activities of Nigeria’s Petroleum Product Pricing Regulatory Agency (PPPRA) and Nigerian National Petroleum Corporation (NNPC) has revealed that both corporations lacked transparency in its documentations during years of fuel subsidy regime.

The probe which is in its third day was a result of several calls made by some Nigerians and the coalition of civil society organizations and organized labour to investigate the existence of cabals that looted over 3.7 trillion naira in the sector.

Earlier, the Senate revealed the names of some beneficiaries of the subsidy which include Oando, Conoil, Enak Oil and gas among others.

The hearing which is headed by Honourable Farouk Lawan, a member of Nigeria's House of Representatives, is part of the Senate’s decision to sanitize the petroleum industry and ensure transparency in its activities.

I line with the sanitization process, President Goodluck Jonathan directed the Economic and Financial Crimes Commission to set up its investigation into the handling of subsidy payments so far which has led to the raid of the agencies and has revealed some degree of frauds in the sector.

Sharp practices

The House Committee Chairman, Farouk Lawan accused PPPRA of sharp practices while reviewing the documentations presented to it.

“Per day discharge is 59 million barrels and the consumption stands at an average of 35 million barrels per day. What that means is that the gap of 14 million barrel is paid for by Nigerians, a subsidy, but which is not utilized in Nigeria”

The Deputy Controller General of the Nigerian custom services and the chairman of the Nigeria Extractive Industries, Asobie Asisi, during their presentations to the house agreed that the records from proceeds of NNPC and PPPRA lacked transparency and due process.

“As we speak, most of the imports of PMS has no documentation in terms of SGD, the level of documentation we have is only by the private marketers. NNPC till date is not making any declarations to customs”.

“Our auditors found out that subsidy payment should normally be made from the Central Bank of Nigeria to petroleum support fund and payment should be made only from the Accountant General of the Federation based on claims approved by PPPRA and what our auditors are saying is that the procedure was not followed”.

In response to these accusations, the Group Managing Director of NNPC, Austen Oniwon, suggested a total control of the nation’s border to prevent illegal diversion of petroleum resources.

On its own part, the coalition of civil society organization has called on the management of both agencies to embark on compulsory leave while investigations are on to ensure that the culprits are probed without interference.

This is one of many probes into issues of national interest in the country, but some Nigerians are in doubt over how effective it will be in identifying and prosecuting the culprits.

Williams