FG to pay N161bn fuel subsidy arrears soon –PPPRA

The Federal Government is set to pay N161bn 2012 fuel subsidy arrears to marketers of petroleum products this month to kick-start orderly importation this year.
As part of the measures aimed at boosting fuel supply, the Petroleum Products Pricing Regulatory Agency, PPPRA, has completed the verification of all genuine claims.
The agency’s duties include determining the pricing policy of petroleum products; regulating the supply and distribution of petroleum products and creating information databank.
PPPRA Executive Secretary, Mr. Reginald Stanley, who confirmed the development yesterday said: “We have completed the verification of claims for the payment of the N161bn subsidy arrears.”
He explained that the Ministry of Finance would raise funds and effect payment since the National Assembly had already granted approval for the payment before its members went on the Yuletide holiday.
“As an agency, our duty is to verify legitimate claims for payment and I can confirm that the verification has taken place,” Stanley told National Mirror.
The executive secretary said the planned payment would encourage petroleum marketers to embark on fuel importation which they could not do for some months because of nonpayment of the outstanding arrears.
He noted that with the planned payment, the banks who were being discouraged from granting loans would now be encouraged to do so, thus boosting supply of petroleum products in all parts of the nation.
“The era of shortage is over because the Federal Government has also made provision for the payment of N971bn as fuel subsidy in the 2013 budget, meaning that it would be possible to sustain importation throughout the New Year,” he said.
Stanley said the development demonstrated the commitment of the government to ensure that sufficient petroleum products were made available for consumption.
Fuel marketers had virtually stopped importation following stringent new terms imposed for the payment of subsidy claims last year after legislative hearings exposed huge fraud in the system.
This had resulted in a situation where only the Nigerian National Petroleum Corporation, NNPC, could import fuel, leading to supply glitches across the nation.
Senate President David Mark had while deliberating on the supplementary budget noted that there was too much corruption in the fuel subsidy regime and the nation needed to take a stand on whether to continue with it or not.
He had said: “If they can’t eliminate the corruption in the industry, then the alternative would be to stop the whole exercise of fuel subsidy, and we must take the one that is easier, which will bring less pain to Nigerians.”
Mark who had noted that the supplementary budget was approved in the overall interest of Nigerians added: “I thank all of you for taking into consideration that if this is not approved, Nigerians are going to suffer. Why we are in the chamber here is to work for the welfare of our people. The nation in my candid opinion must make that decision now because we cannot carry on this way.
“Obviously, they must have anticipated that there was going to be a shortfall when they first made the presentation at the beginning of the year. That did not happen; we are not shouldered with the responsibility of the additional approval. And what we have just done is in the best interest of this country.”
Also, President Goodluck Jonathan had while presenting the 2013 budget proposal to the National Assembly said: “The government is succeeding in substantially cleaning up the management of the petroleum subsidy regime.”
He said the findings of the Aig-lmoukhuede-led presidential committee had assisted the government to tackle corruption threatening the execution of the programme, especially in 2012.
Jonathan had said: “We are working hard to recover monies fraudulently obtained from the subsidy regime. The Economic and Financial Crimes Commission, EFCC, is prosecuting several of those who defrauded Nigeria and the efforts to crack down on corruption in this sector will continue.”