Subsidy: NLC accuses federal government of paying N168b to oil marketers

Subsidy: NLC accuses federal government of paying N168b to oil marketers

- The federal government has been accused of paying subsidy to oil marketers

- This allegation was leveled against the government by the Nigeria Labour Congress (NLC)

- NLC alleged that the government is paying N168 billion as subsidy to the marketers

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A few months after further reduction in the pump price of premium motor spirit, the Nigeria Labour Congress (NLC) has accused the federal government of paying subsidy to oil marketers.

According to a report by The Nation, the labour union alleged that the government is paying the sum of N168 billion as subsidy despite claiming there is no provision in the 2020 budget for it.

This was disclosed by Ayuba Wabba, the NLC president on Wednesday, June 3, during a meeting with the speaker of the House of Representatives, Femi Gbajabiamila.

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Contrary to Wabba's claims, a source at the Ministry of Finance, Budget and National Planning, however, denied the allegations saying nobody was given payment for subsidy.

Subsidy: NLC accuses federal government of paying N168b to oil marketers

NLC during a meeting with the Speaker of the House of Representatives, Femi Gbajabiamila. Photo credit: The Nation/UGC
Source: UGC

The source while noting subsidy is not captured in this year's budget, added that the Nigerian government only gave out promissory notes for 2021 to 2022.

Back in 2019, the presidency revealed that Nigeria pays N500 billion through the Nigeria National Petroleum Corporation (NNPC) for fuel under-recovery.

Ajuri Ngelale who is the special assistant to President Muhammadu Buhari on public affairs, in a series of tweets spoke about the president’s 2020 budget presentation.

The presidency said since the NNPC is the sole importer of petrol, it bears an annual under-recovery of N500 billion. He said if the cost is transferred to Nigerians, fuel will be sold at N230 per litre.

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Meanwhile, Legit.ng previously reported that after their rehabilitation, all Nigerian refineries will be handed over to private companies on the Operation and Maintenance basis (O&M).

This was disclosed by Mallam Mele Kyari, the group managing director of the NNPC on Wednesday, April 8. Kyari explained that the federal government's motive behind this is to get the private sector to invest in the refineries and allow them to decide the fate of the plants where they are situated.

The NNPC boss said: “We are going to get an O&M contract, NNPC won’t run it. We are going to get a firm that will guarantee that this plant would run for some time."

In other news, the federal government has ordered the reduction in the pump price of premium motor spirit from the current price of N125 to N123.50 per litre.

The development comes barely two weeks after President Muhammadu Buhari approved the reduction of pump price from N145 per litre.

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In a statement released on Tuesday evening, March 31, Abdulkadir Saidu, the executive secretary of the Petroleum Products Pricing and Regulatory Agency (PPPRA), said the guiding price takes effect from Wednesday, April 1.

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Source: Legit.ng

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