2. Kerosene Subsidy Scam
The Former Governor of the Central bank and Now Emir of Kano Mr Sanusi had shown that the kerosene subsidy was eliminated in 2009 by a directive of the late president Umaru Yar’Adua. Further evidence, in the form of official data from across Nigeria, shows that nowhere in the country is kerosene sold at a subsidised rate. It is bought by the NNPC at N150, sold to marketers at N40-N50, but retails at N170-N250. Mr Sanusi estimates that $100m goes astray this way each month.
“The margin of 300-500 per cent over purchase price is economic rent, which never got to the man on the street. In dollar terms every vessel of kerosene imported by NNPC with federation money cost about $30m and it was sold at $10 or $11m generating rent of $20m per vessel to the syndicate,” he writes.
It was learnt that since the national assembly members concluded their investigations, no officials of the NNPC or the marketers have been sanctioned, thus emboldening them to continue to import kerosene and allocate to themselves and their cronies.
Apparently due to alleged pecuniary benefits, the NNPC has continued to import kerosene and allocate in questionable circumstances to individuals and groups at the ex-depot price of N40.90.
But rather than selling the product at the subsidised price of N50 per litre at filling stations, the beneficiaries of these allocations sell the product to middlemen at N95 or N100 per litre at the gates of the depots.
These middlemen, it was learnt, truck the product to the filling stations and sell between N130 and N150 per litre.
It was alleged that marketers give some of their allocations to some top PPMC officials to ensure that they turn blind eye to the scam.
The failure of the NNPC to implement a presidential directive removing subsidy from kerosene has fuelled suspicion among the stakeholders.
Punishment: None.
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