*Says NNPC Indicted By Authorities Of Ministry Of Petroleum Resources And The NSC
*Says NNPC Refusing To Subscribe To Bodies To Track Oil Delivery And Combat Smuggling
Human Rights Lawyer, Femi Falana SAN has written to the Chairman of the Economic and Financial Crimes Commission (EFCC), stating that the fuel importation figures of the Nigerian National Petroleum Corporation (NNPC)are bogus and fraudulent from all indications and requested for investigation into the fraudulent importation of fuel and smuggling of product to neighbouring countries, which NNPC has failed to tackle.
According to Falana SAN, On March 24, 2020, the Department of Petroleum Resources (DPR) disclosed that Nigerians were consuming about 38.2 million litres of petrol daily. Specifically, the agency said, “while the Lagos zone with 25 depots has 483,894,000 , the Calabar/Eket Zone with seven depots contains 78,731,000, Warri with 11 depots has 177,599,593, Port Harcourt comprising seven depots has 96,011,000, Umuahia, 6,938,000 and Kaduna 9,679,000.”
In addition to this, the learned silk stated barely 15 months later, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) claimed that 38.2 million litres had grown to over 102 million litres per day, from an average of about 60 million litres per day, where in he had blamed the astronomical rise in the consumption rate of Premium Motor Spirit on the growing activities of smugglers of the product.
He then promised to assist the EFCC’s team of investigators in exposing the fraudulent importation of fuel and the smuggling of the product to neighbouring countries.
Furthermore, Falana SAN established that at a public forum on June 24, 2021, Mr. Kyari announced that the NNPC had concluded arrangements to collaborate with the Economic and Financial Crimes Commission (EFCC), Department of State Services (DSS), Nigeria Police Force (NPF), Nigeria Customs Service (NCS), Nigeria Security and Civil Defence Corps (NSCDC) and other relevant security agencies to tackle the smuggling of petrol from Nigeria neighbouring countries. He also stated that Kyari stated that the Federal Government had directed the NNPC to immediately cut down the consumption rate of PMS from the rate 102 million litres to 60 million litres.
He alleged that the Federal Government distanced itself from the fraudulent importation of fuel by the NNPC, and went to cite the Minister of State, Ministry of Petroleum Resources, Mr. Timpre Sylva said that,
“When I assumed office, initially I was told that our daily consumption was 66 million litres. Then, when fuel prices increased from N145 to N162, the consumption figure temporarily fell to about 40 something million litres per day, because the arbitrage opportunity reduced. When the value of the naira dropped again, and the number went up again to over 60 million litres. I am told the figure sometimes rise to as high as 90 or over 100 million litres. I don’t know how that happens. At this rate, I have said if anyone is looking at a criminal enterprise, look no further than the fuel subsidy.”
To further buttress this, Falana established that Kyari had stated that it was the plan of the corporation to establish filling stations to tackle smuggling of the products, however during his appearance at the public hearing on 2022 to 2024 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), in Abuja organised by the House of Representatives Committee on Finance last week, Mr. Kyari turned round to say that setting up filling stations in neighbouring countries would not stop petrol smuggling from Nigeria.
Falana SAN further established that during Col. Ali’s own appearance at the same public hearing last week, the Comptroller-General of Customs, refuted the bogus figure of fuel allegedly smuggled out of Nigeria. In a rather scientific manner, Colonel Ali exposed the fraudulent claim of the NNPC when he stated inter alia: “If we are consuming 60 million litres of petrol per day by their own computation, why in the world would you allow the lifting of 98 million litres per day?…So how do we get to 60 million everyday? If you say this petrol is smuggled, if you release 98 million litres, and then we use 60 million litres, the balance will be 38 million litres. How many trucks will carry 38 million litres? Everyday. That’s almost 500. Which road are they following? Where are they carrying this thing to?”
In its reaction to the serious allegation of fraudulent importation of fuel into Nigeria and the criminal act of smuggling of the product to neighbouring countries by alleged criminals the NNPC insisted that the average daily evacuation (Depot truck out) from January to August 2022 stood at 67 million litres per day as reported by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
In lieu of all this, Falana viewed thus: “In view of the foregoing, it is crystal clear that the Directorate of Petroleum Resources, the Ministry of Petroleum Resources and the Nigeria Customs Service have shown, beyond any shadow of doubt, that the figures of fuel importation by the NNPC are bogus and fraudulent. The monumental fraud was confirmed when the NNPC cut down the supply of fuel from 102 million litres to 62 million litres per day on the basis of the orders of the Federal Government!”
Falana established that there was the indictment of the NNPC by the authorities of the Ministry of Petroleum Resources and the Nigeria Customs Service, and hence why his firm is compelled to request the Economic and Financial Crimes Commission to to investigate and expose the monumental fraud that has characterised fuel importation and the mismanagement of fuel subsidy by the NNPC as well the criminality of smuggling fuel from Nigeria to neighbouring countries. While conducting this investigation, Falana charged the EFCC thus: “In conducting the investigation the EFCC should find out the quantity of barrels of crude refined locally and in foreign countries including West African states.”
He went on to point out that it may interest the the EFCC to know the Petroleum Equalization Fund spends billions of Naira annually on Project Aquila Software which has a mechanism for tracking all trucks loading fuel in Nigeria. According to this NNPC has refused to use this, and subscribe to another body so as to tackle fraudulent importation and smuggling of petroleum products. He wrote thus: “But the NNPC has deliberately refused to use the software to track the trucks allegedly involved in the loading and smuggling of fuel to neighbouring countries. With respect to the theft of 400,000 barrels of crude oil per day the NNPC has also refused to liaise with Lloyds Intelligence Report and Thompson Reuters Ekon (both are Energy information providers like Platts) which have the record of all cargoes arriving at the international seaports in all countries including our neighbouring countries. If NNPC as a subscriber to both bodies is interested in tracing refined products under- delivered, round- tripped or crude oil smuggled from Nigeria, it can apply for the discharge certificates of all ships that delivered refined products to all vessels that off-take crude oil from Nigeria on a daily basis.”
He then promised to assist the EFCC’s team of investigators in exposing the fraudulent importation of fuel and the smuggling of the product to neighbouring countries.
Credit: The Nigeria Lawyers