Kerosene Subsidy Is A Scam —Central Bank Governor

The Governor of the Central Bank of Nigeria, CBN, Mr. Sanusi Lamido Sanusi yesterday described the kerosene subsidy claim by NNPC as a scam saying that claims by the Nigerian National Petroleum Corporation, NNPC, of spending money on kerosene subsidy are not credible.
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Sanusi made the declaration at the resumed Senate Investigative Public Hearing on un-remitted oil revenue in Abuja stressing that the sum of $20 billion was un-remitted to the Federation Account by the NNPC, between January 2012 and July 2013.
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He said the burden of proof was now on the NNPC to substantiate that the $20 billion unremitted either did not belong to the Federation or was legally and constitutionally spent.
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According to the CBN Governor, the NNPC, by paying kerosene subsidy, confessed to a number of serious infractions. Referring to the data provided by the National Bureau of Statistics, NBS, he stressed that kerosene was not a subsidisd product, adding that the so-called subsidy was rent generated for the benefit of those in the kerosene business.
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Producing evidence that former President Yar’Adua had issued a presidential directive eliminating subsidy payment on kerosene as from July 2009, Sanusi said the huge losses inflicted on the Federation Account have not been appropriated.
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Speaking further, the CBN Governor said the burden of proof was on the NNPC to show where it obtained authorisation to purchase kerosene at N150/litre from Federation funds and sell at about N40/litre, knowing full well that the product sells in the market at N170-N220/litre.
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Citing records of the Nigeria Ports Authority, NPA, Sanusi said the records suggest that the NNPC imports about four to six vessels of kerosene a month. Similarly, he said based on industry sources, the Federation Account loses $100 million monthly due to racketeering in the industry.