Senate probes N771bn fuel subsidy scandal

THE Senate is to investigate an alleged  illegal spending of N771 billion by the Nigerian National Petroleum Corporation (NNPC).
Already, a Senate notice paper entitled “A motion to investigate the current fuel subsidy management and consider the challenges it poses to the implementation of the 2011 budget” has been published, based on a motion sponsored by Senator Bukola Saraki.
Senator Saraki noted that in furtherance of the implementation of the fuel subsidy, an  amount  is budgeted in the Appropriation Act, adding that in 2011, the sum of N240billion was allocated.

He added that of the N20billion monthly allocation, N11.2billion was allocated for domestic fuel subsidy (NNPC) and N8.8billion for domestic fuel subsidy (market) as stated in the Appropriation Act 2011.
He observed  that though N20billion was set aside for subsidy on a monthly basis in the Appropriation Act 2011, in August 2011, the total figure expended was N165 billion, of which NNPC had N88billion and Independent  Marketers N77.7 billion.
According to him, although N240billion was budgeted for the entire year, so far, as of the end of August 2011, N931billion had been spent, which  he said was at variance of N771billion or 700 per cent above the budget.
His worry was that in the first three months of the year, both the NNPC and the Independent Marketers did not exceed N62billion monthly but within the last three months, figures hovered between N150billion and N186billion,
Senator Saraki observed that going by this trend, by the year end, the fuel subsidy bill will be over N1.2trillion as against the N240billion budgeted for in the Appropriation Act.

Story:  Nigerian Tribune