Nigeria’s Oil Corporation, NNPCL, Marketers Claimed Fuel Subsidies On Pipelines That Never Existed –Ex-Governor, Yuguda
Yuguda, who was governor of Bauchi State between 2007 and 2015, spoke while featuring on Channels TV morning programme, SunriseDaily on Monday.
The former Governor of Bauchi State, Isa Yuguda has revealed that the fuel subsidy regime in Nigeria was a total scam which should have gone in 2012 and 2013 under President Goodluck Jonathan.
Yuguda, who was governor of Bauchi State between 2007 and 2015, spoke while featuring on Channels TV morning programme, SunriseDaily on Monday.
He claimed that the Nigeria National Petroleum Corporation Limited (NNPCL) was highly involved in subsidy scams in the oil sector but noted that the “political will” to stop the fraud was lacking in previous administrations.
“We came across a situation where subsidy was claimed on pipelines that never existed,” the former Minister of State for Transport and Aviation between 2003 and 2005 stated.
Reacting to the statement credited to President Bola Tinubu that Nigeria’s financial system under the former Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele was “rotten” and that subsidy benefits only a few people making fortunes from it, the former governor said, “I think that Mr President wouldn’t have said anything better.”
He maintained that Nigeria found itself in its current position regarding the subsidy because the government didn’t have the political will to tackle the problem because of vested interests in the scam.
“I was privileged to serve as the chairman of a sub-committee between 2008 and 2009 under economic meltdown; three of us governors and other members, Mr President as the chairman, so I chaired the committee on subsidy; and everything about the subsidy regime and then the scam in the subsidy removal was discovered by my own committee.
“And of course, since then recommendations were made but unfortunately, were never implemented and this is very sad.
“I am sad to let Nigerians know that from what I saw, we came across situations where subsidies were claimed on pipelines that never existed. It just claimed that I would have pumped X amount of either finished product or crude, maybe from Warri to Kaduna.”
Asked whether NNPCL was the one making the claim, he said, “Of course, it is the NNPC, those that pumped are those in the subsidy scam. They just fill papers, invoices and they claim subsidy on it.
“In fact, there was an instance of a pipeline that was supposed to exist between Lagos and Warri and tons and tons of monies were collected on subsidy on pipelines that never existed. This is Nigeria for you.”
He, however, maintained that both marketers and NNPCL are all involved in the subsidy scam in Nigeria. “And I must sadly also report that Nigeria’s subsidy, the part of it that actually goes for subsidy, we go on subsidizing sub-Saharan Africa and Central Africa because the bulk of these products is smuggled out of this country. Then who is subsidizing who?”
He also claimed that the report on NNPCL being involved in the subsidy fraud regime was submitted to the government and the government was fully aware of the situation.
He added, “Attempts were made but I tell you it can be very frustrating in Nigeria to implement policies; especially where there are intense interests and a cabal that exists.
“Just similar to what we have in the bunkering issue, it can be stopped but you can’t stop it. It can be stopped but the political will to solve it is not there. There are so many interests that are involved there and that is what is leading Nigeria to where we are today.
“That at a point in time during Jonathan’s regime, I know that we were pumping up to one million barrels a day and the prices kept crashing, and how do you manage an economy that is dependent on oil?
“So the subsidy regime as I said should have gone way back in 2012/2013. It should have gone. Anybody shouting subsidy is a selfish person and the person who is connected to the scammers that are killing this country.”
