Reps probe N62.160bn monthly revenue from low pour fuel oil

Nigeria’s House of Representatives has unveiled plans to carry out comprehensive investigation into all transactions relating to N62.160 billii revenue accrued from production and sale of Low Pour Fuel Oil (LPFO).

Low Pour Fuel Oil is one of the products in the fractional distillation of crude oil. Fuel Oil is used run broilers in many industries especially textile and cement manufacturing industries.

The resolution was passed following the adoption of a motion sponsored by Edward Pwajok and three other lawmakers who emphasised the need to probe allegations bothering on shortchanging of Federal Republic of Nigeria and other corporate on the slaes and remittances of LPFO by Nigerian National Petroleum Corporation (NNPC).
“Nigeria, with a population of over 198 million, growing at an average of 2.7% per annum and an economic growth rate if about 5.7% in the past five years, has a steady growth of industrialization in both rural and urban areas, therefore is a consistent correlation between the market for LPFO and economic growth/sustainability.

“The nation’s demand for LPFO currently stands at an estimated 20 million litres per day at a current price of N103.60/litre, and Nigeria currently generates N2.072 billion per day and N62.160 billion on the sale of the popularly known LPFO,” he said.

According to him, “Nigeria’s LPFO is one of the best in the world and is exported in mass’s volumes from our refineries due to high demand by European and American refineries.

“The House is concerned that all Ber the world, the sale of and purchase of petrochemical and other oil products is usually done through a network of coordinators and facilitators who ensure a smooth transaction between the seller/supplier and the buyer/end-buyer.

“The House regrets that a lot of illicit transactions have transpired during the cause of the business transactions of LPFO among the buyers with the NNPC over the years SBD the Nigerian Government has lost a substantial amount of revenue due to lack of diligence, efficiency and economic management of LPFO transactions,” Pwajok argued.

In line with the extant rules of the House, Speaker Yakubu Dogara referred the motion to the House Committee on Petroleum Resources (Downstream) with the view to ascertain the amount lost by the Federal Government and recommend steps to be taken for recovery of all funds (underpayment) and report back within six weeks.

Also at plenary, the House urged NNPC/NNPC Retail Limited and Federal Ministry of Petroleum Resources to resume regular supply of products to Bonny mega station.

 

KEHINDE AKINTOLA, Abuja