Fuel Subsidy: Nigeria Paid N287 Billion To Oil Marketers In 2013 – Finance Minister

nigeria paid N287billion to oil marketers

Nov 16, 2013 – Fuel Subsidy Payment 2013: Nigeria Paid N287 Billion To Oil Marketers In 2013 – Finance Minister

Here is an email Nigeria’s finance Minister sent to Sahara Reporter one hour ago in response to a Fuel Subsidy payment inquiry.

NaijaGists.com was copied on the email so we thought we should give you guys the details:

Read the email sent by Ngozi Okonjo Iweala on how much Nigeria has paid Oil marketers in fuel subsidy this year alone:

Inquiry email from Sahara Reporter:

Saharareporters wishes to confirm if your office has finally approved the payment of N174 billion in oil subsidy payments to oil marketers, some of them from claims made in 20122 that were earlier disputed.The inquiry relates to a number of questionable deals spelt out in several committee reports and ongoing trials by the police and the economic and financial crimes commission (EFCC).Kindly respond.”
Response from the Finance Minister:

For the record and in the interest of the Nigerian public which has a right to correct information, I will answer your question.

First, it is important to keep in mind the big picture about the current status of payments to marketers compared to the recent past.

In response to public anger about high payments to marketers in 2011, the Federal Ministry of Finance working under the CME with DMO and PPPRA instituted new processes and procedures to curb fraud and inefficiency. The ministry makes payments based on verified batched claims sent by PPPRA to DMO which verifies them again in a new process put in place before final payment.

As a result, the payments have declined from N2.2 trillion in 2011 to N950 billion in 2012, much of this due to subsidy phase down but a good part also due to better verification processes.

Regarding your specific question, the Federal Ministry of Finance has thus far this year paid N287 billion in verified claims to marketers. The details have been published in our regular updates in the newspapers and magazines.

We are getting ready to make additional payments to marketers. Marketers are also making claims for interest and foreign exchange differentials as provided for in the PPPRA template, which have not been paid, and we are verifying those as well.

As the public has been made aware, no marketer involved in questionable deals is paid. All fraudulent marketers identified by the Aig-Imoukhuede committee had their names published in the media. A few were subsequently sent by the committee to the Serious Fraud Office for further investigation and were later cleared based on their defence and a re-examination of the evidence. These joined the list of cleared marketers. The others remain blacklisted.