HighlightOil & Gas

Lack of trust in NNPC: Governors want states to determine oil subsidy payment henceforth 

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None of the 36 state governors in Nigeria trust the NNPC “to do what is right”— over subsidy payments any longer.

The Governors want states rather than the Nigerian National Petroleum Corporation (NNPC) to determine how much is paid as subsidy by government.

“You see, we are in the hands of these people (NNPC) and we are trying to be cautious. Not just NNPC, even Nigerians are not helping matters because when there is shortfall in the product, everybody will start making noise. And you will not know why there is shortfall, said Abdelaziz Yari, Zamfara governor.

The governors say individual state will determined the quantity of petroleum product consumed in its territory as a basis for calculating the subsidy to be paid.

“If we start to investigate, these people will create chaos that we will regret and Nigerians will not look at the damage from the base. But rather, they will start accusing government of laxity or not doing what it is supposed to be doing.

“So, it’s not about investigation. It’s about knowing what’s going to happen to future supply.  And this supply, the destination must be set.

“That’s is why we gave the states the responsibility to go back and ascertain the quantity needed by each and every state.”

 The National Economic Council (NEC) led by Vice President Yemi Osinbajo, which is currently in session is expected to endorse the move.

The governors who met Wednesday night on the platform of Nigeria Governors Forum, at their Maitama, Abuja office, are uncomfortable  with the amount Nigeria National Petroleum Corporation (NNPC) is claiming to pay as subsidy as well as the corporation’s stated quantity of local consumption.

With dwindling accruals to states, NNPC has told the governors that it is now paying subsidy on 60 million liters daily consumption up from 33 million liters a few months ago.

Briefing newsmen last night at the end of the NGF meeting which ended at 11:30pm Wednesday night, its chairman and Zamfara state governor, Abdulaziz Yari, said “if states say our demand is 30 million liters, you cannot say you brought 60 million liters for us.

“We are taking every situation carefully so that we don’t endanger the security situation of the country and at same time, we do not play into the hands of the NNPC.”

He said however that the governors will not be pushing for the investigation of NNPC as the move may backfire.

“This is not the first time that a massive drop in trust has been linked to the pressing issue of subsidy, said a governor of the phone.

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