The Nigeria Customs Service (NCS) has faulted claims by the
Nigerian National Petroleum Company (NNPC) Limited that Nigerians consume “60 million
litres of petrol daily”.
Hammed Ali, comptroller-general, Nigeria Customs Service
(NCS), said this on Thursday during a session with the house of representatives
committee on finance on the 2023-2025 medium-term expenditure frame and fiscal
strategy paper (MTEF/FSP).
Ali said he wondered “why NNPC, which put Nigeria’s daily
fuel consumption at 60 million litres, lifts 98 million litres into the
market”.
Reacting to questions by the committee on the proposed
subsidy spending for 2022, Ali said the issue is about the daily petroleum
consumption estimations.
“I remember that last
year, we spoke about this. Unfortunately, this year, we are talking about
subsidy again. The over N11 trillion we are going to take as debt, more than
half of it is going for a subsidy,” he said.
“The issue is not about the smuggling of petroleum products.
I have always argued this with the NNPC. If we are consuming 60 million litres
of PMS per day by their own computation, why would you allow the release of 98
million litres per day? If you know this is our consumption, why would you
allow that release?
“Scientifically, you cannot tell me that if I fill my tank
today, tomorrow, I will fill the same tank with the same quantity of fuel.
“If I am operating a fuel station today and I go to Minna
depot, lift petrol and take it to Kaduna, I may get to Kaduna in the evening
and offload that fuel. There is no way I would have sold off that petrol
immediately to warrant another load.
“So, how did you get to 60 million litres per day? That is
my question. The issue of smuggling, if you release 98 million litres in actual
and 60 million litres are used, the balance should be 38 million litres. How
many trucks will carry 38 million litres every day? Which road are they
following and where are they carrying this thing to?”
The comptroller-general said the customs is doing its best
to fight against smuggling, adding that more support, collaboration and
provision will go a long way.
He also explained that the service was not remitting its
operating surplus of seven percent because it is used for operations and
payment of its staff members’ salaries.
“Nigeria Customs
Service is the only organisation today that has to fight to collect revenue. It
is the only organisation that losses its men in the course of collecting
revenue and enforcing anti-smuggling provisions,” he added.
“It is the only organisation that raises its funds on a
regular basis.
“As a result of this, the government agreed to give us a
seven percent cost of collection. By my understanding, the cost of collection
is paying for our labour. That is what we live on, that is what we use to pay
our salaries, and fund our capital and overhead. That is our sole income.
On his part, Saidu Abdullahi, deputy chairman of the committee,
who presided over the session, said about 500 trucks with 70,000 litre-capacity
each are needed to ferry the 38 million excess litres.
Abdullahi said he wondered “if the Nigerian Communications
Satellite (NIGCOMSAT) had at any time captured images of trucks leaving our
shore”.
He described subsidy payment as a scam, adding that it
constitutes a drain on the economy.
“If there is anything that has constituted a nuisance and
has become a drain on the economy today, it is this issue of subsidy,”
Abdullahi said.
“As a government, we have not done well. We owe it to the
people of this country to do what is right for this country. We are talking
about over N6 trillion going for subsidy payment that almost doesn’t exist.
“You talk about 38
million litres which amount to about 500 trucks leaving our shores on a daily
basis. We have an investment in NIGCOMSAT. Has there been any time that our
satellite captured images of trucks leaving our shore?
“I think it is very clear that what is required is the
political will to put a halt to this.
“Considering the importance of the inter-dependence of these
two arms of government, I think we should work together to put a halt to this.
Posterity will be kind to us if we are able to proffer a lasting solution to
this issue of subsidy because it is not sustainable.
“We talk about insecurity. This is the real course of it. The
money that is supposed to go into the provision of social amenities is going
into private pockets. I think there is a need to work together to put a halt to
this.”
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