NMDPRA claims N74b paid to PMS marketers in seven months

• Reps probe NNPC over alleged corruption on petroleum subsidy

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said it paid N74 billion to Premium Motor Spirit (PMS) marketers in its bid to ensure the availability of the product nationwide.

It said it is disheartening that despite payment and increase of N10 bridging cost, approved by President Muhammadu Buhari, two weeks ago, the Independent Petroleum Marketers Association of Nigeria (IPMAN) could turn around and accuse NMDPRA of insensitivity.

Reacting to allegations by IPMAN (Suleja branch) on product scarcity, as a result of non-payment of bridging claims, the Authority Chief Executive of NMDPRA, Farouk Ahmed, said that at a meeting held on May 17, 2022, with IPMAN, bridging payment processes were discussed extensively, and the processes explained and agreed upon by IPMAN.

He assured IPMAN of NMDPRA’s willingness to continue making payments of outstanding claims to promote seamless operations.

He said: “Pursuant to the meeting, NMDPRA went ahead to make an additional payment of N10 billion in June and sought an upward review of the freight rate, which was approved by President Buhari, and is currently being implemented.

“The Authority wishes to reiterate that bridging payment is an ongoing process, which is carried out after due verification by the Authority and marketers.”

According to him, so far, the Authority paid N71,233,712,991 bridging claims and another N2,736,179,950.84 freight differentials to the marketers as of June 6, 2022.

He said Major Marketers (MOMAN) received N9,958,777,487.24; IPMAN members were paid N42,301,923,616.96; NNPC Retails, N6,661,459,118.61, while Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN) members were paid N12,303,195,651.57, translating to a total of N73,969,892,941.84.

MEANWHILE, the House of Representatives, yesterday, resolved to beam its searchlight on the Nigeria National Petroleum Company (NNPC) over its handling of petroleum subsidy from 2017 to 2021.

The decision followed the adoption of a motion sponsored by Sergius Ose Ogun (PDP, Edo) at a plenary presided by Speaker Femi Gbajabiamila.

The House committed to setting up an adhoc committee with a mandate to turn in its reports within eight weeks.

Ogun expressed concern that the subsidy regime has been unscrupulously used by NNPC and other stakeholders to subvert the nation’s crude oil revenue to the tune of over $10 billion, with records showing that as of 2021, over $7 billion in over 120 million barrels were diverted.

He claimed evidence exists of subsidy figures being duplicated: charged against petroleum products sales in the books of NNPC as well as against crude oil revenue in the books of National Petroleum Investment Management Services (NAPIMS) to the tune of over N2 trillion.

Ogun also said he was aware that component cost in the petroleum products subsidy value chain claimed by NNPC is highly over-bloated, while the transfer pump price per litre used by NNPC, in relation to Petroleum Products Marketing Company (PPMC), is under-quoted as N123-N128 instead of N162-N165, and that this fraudulent under-reporting of N37-N39 per litre translates into over N70 billion a month or N840 billion a
year.