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Federal government has directed the Department of Petroleum Resources ( DPR) to close down all filing stations within 10 kilometers of Nigeria border to halt smuggling of petroleum products
Chairman of Nigeria Governors Forum ( NGF) and Governor of Zamfara state Abdulaziz Yari disclosed this Wednesday after meeting with Vice President Yemi Osinbajo at the Presidential Villa, Abuja.
The meeting with Nigerian National Petroleum Corporation ( NNPC) officials was the second in two weeks called to address the shortfall in NNPC,s remittances into the federation account.
Yari disclosed that governors and the federal government were not satisfied with the way remittances are being made by the NNPC
He noted that the shortfalls is forcing government to raise many questions on NNPC operations.
The Governors had expressed their dissatisfaction with the NNPC, s explanations at last week,s meeting, forcing an intervention by Osinbajo who is the chairman of the National Economic Council.
According to him, ” We raised three issues, one of which was on the issue of royalties.
” Each and every barrel taken out of the country there is either 17 or 24 percent of it as royalty and there is 17 or 20 percent as tax”
The Governors had expressed concern following reports by the Department of Petroleum Resources (DPR), which revealed that the NNPC has not remitting any payment of royalty.
DPR had revealed that NNPC transmit directly from its account to the federation account which is not allowed by the law.
“According to the law that established the DPR, section 196 of the Act, said all the royalty should be paid to DPR and then transmit to the federation account, which is not”
“So, we discussed today and we have sort those ones out.
“The NNPC will not transmit to federation account with clear distinction that this amount is for royalty and X amount is for taxes, and X amount is profits from the sales. So we achieved that.”
The Governors also noted that the NNPC is making payment on behalf of Nigeria on Cash-call contributions, as well as payment of cash call arrears of Nigeria’s contribution.
” But, our main concern is that in 2015, they said about $16.8 billion which is outstanding was not paid by the last administration and they negotiated it down to $5.1 billion according to them. What we said specifically is that they should bring to us how much they have paid from 2015 to date and what is outstanding.
” And we directed they to stop payment until the claims are proven and then we can give further directives. That too was achieved.
“On the issue of cost recovery otherwise called subsidy, the issue of subsidy resurfaced again after the efforts of Mr. President. Before now the oil was $40 per barrel and now it is about $78 a barrel, so therefore they are depending largely on importation.
” So therefore, the cost is higher than what they are selling at the filling station and they need more money. When there was no cost recovery, the NNPC clearly gave us the number of 33 and 35 million liters per day as the consumption of Nigeria.
” But now that with the new regime of cost recovery, NNPC is claiming daily consumption of 60 and 65 million liters per day?
Yari said government has rejected this claims
According to him: ” Many of our international partners are saying that even if we are feeding Nigeria, Cameroon, Ghana and Niger, we cannot consume more than 35 million liters per day.
” So, we are wondering where the 60 million liters is coming from. So, we are trying to sort that one out, that one is not yet resolved”
” We are now taking a very hard decision, that because NNPC said the reason why they were lifting 60 million per day is because our borders are porous.
” So, we have taken the decision that any filling station that is 10 kilometers on the border side should be closed by DPR.
He disclosed that government will now need to do recertification according to the needs.
” Secondly, we have directed the minister of Finance in collaboration with the DPR and the NNPC introduce tracking devices on every truck in other to monitor where they are discharging the fuel.
” This is because we are suspicious of the number, we cannot confirm the difference from 30 million liters per day consumption to 60 and 65 million lite w per day consumption. So these are our decisions on the NNPC” he said.
Tony Ailemen, Abuja
