Why FGN Has Not Paid N413 Billion Oil Subsidy Owed Marketers

by on November 12, 2015

Dr. Ibe Kachikwu while addressing the heads of parastatals and directors of the Ministry of Petroleum Resources in Abuja  stated that the payment of the N413 billion oil subsidy promised marketers two weeks ago has not been effected because the approval of the National Assembly was needed.

Dr. Ibe Kachikwu said: “The money was approved by the president. It has not reached them physically because there is a process that our constitution requires in terms of approving those set of (extra-budgetary) expenditures. “The president is taking time to write the Assembly to appraise them of need to do this. Do we want to pay, yes! Have we provided for the money, yes! Do we need approval from outside the executive to recommend that, yes!

Dr Ibe Kachikwu however gave the assurance that the payment processes will be perfected in a week.  “It is going through a process.”

The minister stated that there is enough fuel supply. He said: “As of today, we have product both onshore and offshore that will last about 22/23 days”

“The number of trucks that has been moved around the country is in excess of 4,000 trucks as against the normal 2500 utilization’. “Product is not the issue, what is the issue is the usual panic buying by Nigerians.”

He also added that “The president is concerned about change in the perception about the ministry and other key substantial deliverables including cutting cost, growing income streams and helping the federation stabilize.”

To the heads of parastatals, he said: “I will imagine that in the first couple of months we would let the Managing Directors of various parastatals work with us to understand what the agenda for this administration is.

“Our policy direction is to find more money, find more oil, find more gas, monetize them and put money in the hands of the government.

“We have dwindling resources and yet the whole nation depends on this ministry to provide the resources. “So we must be able to put on the cap on how do we cut cost; how do we improve on earnings; how do we make Federation Account to improve? “How do we put controls that are essential to avoid leakages; how do we develop new income strings?

“How do we develop new investments to help the federation stabilize; those are very key and that is where we are heading to.” Kachikwu, who also doubles as the Group Managing Director of NNPC, noted that the proposed work in the ministry would change the way and manner things were done in the past. He said it was important for the leadership of the ministry in all areas to key into the change mantra of the present administration”.

Omolara Adegoke – Abuja

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