Fresh Fuel Scarcity Looms As Marketers Renege In Agreement, Give FG New Condition

The Cable - Oil marketers have not resumed importation of petrol despite the increase in pump price.

A government official who spoke with TheCable described it as “a stab in the back” – as another fuel crisis looms.

The Nigerian National Petroleum Corporation (NNPC) had been the sole importer of PMS but a crippling crisis ensued as the corporation could not get enough foreign exchange from the Central Bank of Nigeria (CBN) at the official rate of N197/$1.

The corporation was also overwhelmed by the volume of importation.

To resolve the crisis, marketers – who stopped importing petrol in the last quarter of 2015, blaming lack of policy clarity – were invited to a round-table by the federal government.

“We reached a number of agreements. One, they would source for forex from the secondary market. Two, the pump price would be adjusted upward to allow them recover without subsidy,” he said.

“In reaching the agreement to increase the price from N86.50 to a maximum of N145 per litre, we worked with a rate of N300 to $1, although the interbank rate is N285, and that is the secondary market where they were to source forex.

“We also agreed to clear subsidy arrears running into about N50 billion, which had been outstanding since 2015. All agreed, and government went ahead to announce the price increase.

“We also paid the subsidy arrears. All of a sudden, the marketers started saying they needed forex from the CBN again. They are yet to resume importation, and what the NNPC has in stock cannot last the distance.”

While members of Depot and Petroleum Products Marketers Association of Nigeria (DPPMAN) would want the federal government to make forex available for them to import petroleum products, TheCable understands that members of Major Oil Marketers Association of Nigeria (MOMAN) are more disposed to the introduction of a second window of forex rather than seeking the hard currency from CBN.

The CBN has already hinted about the introduction of a secondary window, where autonomous sources of foreign exchange will channel their funds and trade at a rate closer to market realities.

While the official rate is N197-N200, interbank is N285 and black market is averagely N345.

N4.9Trillion NOT N3.2t UNACCOUNTED For Under Jonathan - RMAFC Also Confirms Sanusi's Alarm

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) yesterday stated that the Nigerian National Petroleum Corporation (NNPC) was yet to remit N4.9 trillion into the Federation Account.

A statement from the commission’s Head of Public Communications, Mr. Ibrahim Mohammed, said that its records showed that the NNPC owed more than what the Office of the Auditor- General of the Federation stated in its audit report. “RMAFC observed that the figure of N3.2 trillion from the 2014 Annual Audit Report was obtained from the records of the FAAC Technical Sub- Committee on Domestic Crude Oil Sales,” it said.

Related News: $16b NNPC Revenue UNACCOUNTED For Under Jonathan - Auditor General Confirms Sanusi's Alarm

It said the report was also from the reconciliation statement as contained in the NNPC’s mandate to the Central Bank of Nigeria (CBN). “However, available records at the commission’s disposal indicate that between January 2011 and December 2015, the total indebtedness of the NNPC to the Federation Account is N4.9 trillion. “This includes NNPC’s claims for subsidy on petroleum products, crude and product losses, strategic reserves and the pipeline maintenance cost.

“The commission’s records reveal that the corporation owed the Federation Account the sum of N1.99 trillion only in 2014 from domestic crude sales. “Therefore, the figure quoted by the auditorgeneral of the federation must have included revenues from other sources,” it said.

On the alleged payment of $235 million realised from the sale of natural gas into an undisclosed Escrow Account by the NNPC, the commission said it was proceeds from funding various gas projects.

It said that the proceeds were from a tripartite agreement on gas projects under Nigeria Liquefied Natural Gas (NLNG) with Nigeria Agip Oil Coy, Shell Petroleum Development Coy of Nigeria and Total E&P Nig. Ltd.

“The total amount transferred to the various accounts from 2012 to November 2015 was $1.62 billion. “The commission, through the FAAC Post Mortem, has consistently requested the NNPC to provide it with updated financial statements on the projects, but the NNPC was yet to respond,” it said.

It also said that RMAFC, NNPC and the Ministry of Finance in December 2015 agreed to carry out a forensic audit of the state-owned oil firm to ascertain the actual indebtedness of the corporation to the federation.

It said that the audit was expected to be concluded by the end of March 2016. The Office of the Auditor- General of the Federation, in its report for 2014, said the NNPC did not remit N3.2 trillion in 2014.

Afterwards, the NNPC rejected the findings of the audit report submitted last week to the National Assembly by the Office of the Auditor-General of the Federation. According to the NNPC, its balance to the Federation Account for 2014 was N326 billion only.

Source: New Telegraph