BusinessDay

Customs refute NNPC’s 60 million litres daily petrol consumption claim

...as service projects N2.872trn revenue in 2023 ... subsidy payment is unsustainable, says Hamid Ali

The Nigerian Customs Service has refuted claims by the Nigerian National Petroleum Corporation (NNPC) Limited that Nigerians consume about 60 million litres of Premium Motor Spirit (PMS) commonly known as petrol daily.

Hamid Ali, comptroller general of Customs refuted the claims when he appeared before the House of Representatives Committee on Finance for interaction on Medium Term Expenditure Framework and Fiscal Strategy Paper, MTEF/FSP 2023-2025 on Thursday.

Ali, who stressed that such a figure was not feasible, said unless the NNPC is saying that Nigerians fill the tank of their cars everyday, there is no way 60 million litres of fuel can be consumed daily without the figure changing.

He said the most worrisome aspect of the subsidy payment is that NNPC Limited claims that it lifts an average of 98 million litres of fuel per day while 60 million is consumed on daily basis by Nigerians.

The Customs boss said: “If NNPC Limited claims that it lifts 98 million litres of fuel every day and only 60 million (which is even questionable) is consumed by Nigerians daily, what then happens to the remaining 38 million litres.

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“NNPC Limited claims that Nigerians consume 60 million litres of fuel daily and it lifts 98 million litres daily, what happens to the balance, why did we allow that, to me, that is not feasible, how we got here is what I don’t know.
Payment of fuel subsidy is not sustainable, we have to find a lasting solution to that.”

When told that NNPC also claim that large quantities of the fuel they lift are smuggled out of the country, Ali said: “from this information, NNPC is claiming that 38 million litres of fuel are smuggled out, it will take about 500 trucks to smuggle that quantity of fuel out Nigeria, which road do they pass without being caught?”

He told the lawmakers that the Service has generated the sum of N1.167 trillion as of July this year and that it has projected to generate the sum of N2.872 trillion in 2023 fiscal year.

According to Ali, Customs has also projected to generate the sum of N3.54 trillion and N3.752 trillion in 2024 and 2025 respectively adding that all the monies it generated this year have been paid into the Federation Accounts.

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