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Tuesday, 4 March 2014

Kerosene subsidy: Removal delayed to avert labour, masses unrest - (NIGERIA)





Available evidence has indicated that the Nigerian National Petroleum Corporation, NNPC, was advised to stay action on the implementation of the removal of subsidy on kerosene to avert labour and masses unrest.
WAITING: Queue for kerosene at a Nigerian National Petroleum Corporation, NNPC, Mega Filling Station in Yelwa, Bauchi State, yesterday. NAN PHOTO.
WAITING: Queue for kerosene at a Nigerian National Petroleum Corporation, NNPC, Mega Filling Station in Yelwa, Bauchi State, yesterday. NAN PHOTO.

Recall that in the wake of the scandal on NNPC remittances to the Federation accounts, the former Governor, Central Bank of Nigeria, CBN, Mallam Sanusi Lamido Sanusi, had declared kerosene subsidy as illegal.

But the stay of action Vanguard gathered was approved by an Inter-ministerial Committee set up by late President Umaru Musa Yar’Adua, on the deregulation of the downstream.

According to the Committee, “This unanimous decision was a strategic move to win the hearts and minds of the public over the eventual goal of deregulating the downstream sector as a whole.”

In a series of memos among the ministries of Petroleum, Finance, and NNPC over a period of five years exclusively obtained by Sweetcrude, this fact was reiterated over and over again.

In one of the memos dated February 15, 2010, the then Group Managing Director, NNPC, Mr. Mohammed Barkindo, reminded the then Minister of Finance, Dr. Mansur Muhtar of this decision, when the Corporation was having problems with getting payment for claims for kerosene subsidy.

In the memo entitled: “Re: Endorsement of Action Plan on the Deregulation of the Downstream Petroleum Sub-sector – Subsidy for Kerosene,” Barkindo reminded Muhtar of the directive to NNPC “to delay implementation of the decision to remove subsidy on kerosene.”

The stay of action remained even as the NNPC, in subsequent correspondences constantly sought clarification on the implementation of the removal of kerosene subsidy “to avoid misunderstandings”.

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Sources The Vanguard

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