Yesterday, the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) made an important revelation regarding the Nigeria National Petroleum Company Limited (NNPCL).

According to the commission, the NNPCL has been withholding a staggering amount of N8.480 trillion, which was intended for the Federation Account, under the guise of petrol subsidy. This withholding has occurred over the period between January of last year and the present.

In a statement delivered in Abuja, Mr. Mohammed Shehu, the Chairman of the commission, expressed concerns about the lack of transparency surrounding the subsidy regime. He emphasized that ending the subsidy was the best decision for the nation, as the significant amount remains unaccounted for and unreconciled.

According to him, “It is saddening to note that since 1st January, 2022 to date, the Nigeria National Petroleum Company Limited (NNPCL) has not been contributing to the Federation Account due to the claimed subsidy payments.

“The total amount withheld by the NNPCL as claimed subsidies for this period amounted to N8,480,204,553,608.13 as reported by the Office of the Accountant General of the Federation(OAGF) which is yet to be reconciled by the RMAFC, OAGF, and NNPCL.

“In a situation whereby the records of subsidy transactions are not transparent and crude oil prices are being determined globally, it would be unwise to sustain the phantom payments of subsidy at the detriment of other critical sectors of the economy thus making its sustainability difficult for the Government.”

Mr. Shehu emphasized that by removing fuel subsidies, the alleged uncertainty surrounding the subsidy regime would be eliminated, and funds would be freed up for critical national development and enhancement of human capital. He praised President Bola Tinubu’s decision to announce the removal of fuel subsidy during his inaugural speech on May 29, 2023, citing the lack of budgetary provision for subsidy as a decisive move that broke the subsidy cycle. In accordance with existing laws, Mr. Shehu urged President Tinubu to take action against all economic saboteurs who have contributed to the nation’s economic challenges.

With optimism, he looked forward to the operationalization of the Dangote Refinery, which he believed would usher in a new era of seamless oil production and distribution without the need for a subsidy regime. The Chairman of RMAFC also called on the president to swiftly implement measures to alleviate the hardships caused by the removal of subsidies.