The Senate Committee on Gas Resources and the Nigerian
National Petroleum Commission (NNPC) have finally reached an agreement over the
$1.05 billion NLNG fund.
This agreement clarifies that the $1.05 billion, which was
initially thought to be missing, was never missing at all. Instead, the money
was, indeed, expended on the importation of refined petroleum products just
like the NNPC had insisted all along.
In the same vein, the NNPC has also claimed that being a
state-owned company, it is empowered by section 7 of the NNPC Act to withdraw
money from the Nigeria Liquefied Natural Gas (NLNG) dividend account.
The NNPC’s Chief Financial Officer, Mr Isiaka Abdulrazaq,
provided the necessary documents backing up the corporation’s action.
According to the NNPC, it became necessary to import Premium
Motor Spirit (PMS) and refined petroleum products in order to ensure constant
availability of the commodities and at subsidised pump prices. PMS currently sells at the official pump
price of N145 per litre.
Senate Committee speaks
Chairman of the Senate Committee on Gas, Senator Bassey
Albert, also commented on this development. According to him, it was important
to clarify that the Senate was investigating into the use of the NLNG fund and
not its supposed missing. After all, the fund was never missing, he said.
He specifically stated that the Committee was most
interested in establishing the legal backing for the NNPC’s withdrawal of the
fund; something it has now done.
He also used the occasion to chastise what he described as
“sensational and misleading reports” by some media outlets.
In all fairness, it should be noted that there has not been
any incident of fuel scarcity this year. This is unlike what happened this time
last year and year before.
Nigeria’s Department of Petroleum Resources (DPR) and the
NNPC have urged Nigerians not to panic.
“Consumers should avoid panic purchase of petrol. We have
enough of the products in the depots, adding that storing of petrol at homes is
dangerous because fire outbreak.
“The NNPC has also build up strategic reserves across its
hinterland and coastal areas to meet emergencies arising from price volatility
in the international oil market.”
