Oil Subsidy: “Okonjo Iweala Authorized Payment of N1.3trillion” – Petroleum Minister


More details into the quagmire of oil subsidy removal scandal presently unfolding within the Jonathan administration appears to be making its way into the public arena. This is as the house of representative committee charged with investigating the management of funds related to fuel subsidy began public inquiry into the process of subsidy payments by the Federal Government of Nigeria to select licenced marketers of petrol and kerosene.

Yesterday, the finance minister, Okonjo Iweala honored the invitation of the [adhoc] committee. The committee quizzed her on the finance ministry’s involvement in the oil subsidy process. In her exchanges with the committee, the minister made it clear that all monies made from crude oil through NNPC and partners – are not paid directly into the federal accounts of the nation. The minister stated that the monies for the oil subsidy are withdrawn before it gets to the national accounts – of which she accented by noting that it was unconstitutional for the NNPC to deduct any monies from Nigeria’s crude oil revenues before payment into the national accounts.

However the Petroleum Resources Minister’s appearance before the adhoc committee today discounts the finance minister’s accession as untrue. The Minister pointed blame to the finance minister for the authorization of the N1.3trillion payment for oil subsidy. This she noted repeatedly while adding that the N1.3trillion may have been misleading to the Nigerian public.

The Petroleum Minister admitted under questioning from Hon Lawan Farouk that the N1.3trillion was not only paid for petrol subsidy – that the sum contained arrears for Kerosene and Petrol subsidy dating back to 2008 – thus giving the impression to the Nigerian public that the nation was disbursing disturbing amounts of money for the payment of petrol subsidy. She admitted also that only N250billion out of the N1.3trillion was paid for petrol subsidy.

The Petroleum Minister admitted that she does not know the total volume of petrol consumed in Nigeria. This is as she complained that Nigerian Federal Government was virtually subsidizing the entire ECOWAS community – as illegal transporters of petrol move subsidized petrol out from Nigeria to neighboring ECOWAS countries. But the federal petroleum minister was pinned on an embarrassing note – as it was pointed out to her that the Petroleum Ministry should know the total volume of petrol consume locally – that it would amount to a rudimentary embarrassment should the ministry not have the data.

The Petroleum Minister was not able to provide the total nominal capacity of the refineries in Nigeria. She indicated that information available to her showed that 12% of locally consumed petrol is refined in Nigeria – that Nigeria imports up to 90% of her petrol. She explained that Nigeria’s refining capacity has increased to 60% from 30%.

It was learnt that operations at the Petroleum Ministry may have lost is focus starting from 2006. As gathered, the NNPC imported 92% of all the petrol used for local consumption in 2006 – at a much reduced cost – while private marketers [importers] were contracted to import about 8% of petrol. Today, it has flipped, virtually the entire locally consumed petrol is imported by independent marketers at an exorbitant cost. The Minister states that the independent marketers were introduced “to add competition”.

“We have done nothing unconstitutional as a ministry” – exclaimed the Petroleum Ministry who spoke in a subdued demeanor as she managed to explain the huge disparity in the amounts of money paid to subsidize petrol in 2006 [when it was recorded that 27million liters of petrol was subsidized] and in 2011 [when it was recorded that 33million liters of petrol was subsidized]. In effect, N200billion in subsidy money was paid in 2006 for 27million liters of petrol while N1.3trillion was paid in 2011 for 33million liters.

In 2008 when the average crude oil price per barrel was $100 about 33million liters of petrol was subsidized at N630billion – similar to today’s market conditions where the average price per barrel of crude oil is $100 – and about 33mllion liters of petrol was subsidized at N1.3trillion.

The Petroleum Minister battled to explain why N245billion made available in the 2011 appropriation bill for payment of fuel subsidy when N1.3trillion was paid in November/December 2011. In her attempt, she admitted that the N245billion in the 2011 budget was for payment of fuel subsidy for two [2] months and not for one year. She indicated that the federal ministry of petroleum had anticipated that the oil subsidy will be removed by March/April 2011 – during the general elections – but it was not removed – so the ministry in tandem with the finance ministry proceeded to release additional payment of N1.3trillion.

stay tuned.



  1. Fellow Nigerians,I hereby move the motion for immediate resignation of these federal ministers of the republic: minister for petroleum{ALLISON DIEAZANI},minister for finance{NGOZI OKONJO IWEALA}and minister for defence{HARLIYU};for negligence,dereliction of duty and disseminating wrong information about Nigeria to Nigerians.

  2. It is a shame on the Minister of Defence who called Nigerians fighting corruption disgruntled element on NTA.He should read this and know that if not for Nigerians all these exposures will not come out atleast his village people will also enjoy the struggle of the so called element through the reduction of the fuel price.I declare it a curse on him and any member of his family who buy fuel at #97. On okonjo,she left World bank where the pay is good to be a Minister,who doesn’t know she came to steal.The next protest is for their sack.

    • Hey I want to faint!!!…A whole petroleum minister doesn’t know how much fuel is consumed locally in nigeria? Then proberly she doesn’t even know how much is refined locally or how many barrels of oil is been drilled daily by oil multinational companies, they maybe drilling 100 of millions daily, what else will she know? then why is she there and what is she still doing there until this second? This is incompetency in it full regalia, this is more than embarrassing, How will this country move forward when we have incompetent and ignorant people in sensitive positions…As for the Defense minister,what has he done since the inception of boko haram crisis? from the way he speaks, he falls nothing short than a foolish idiot seeking political favor.

  3. Not surprised,I have always known this people are not telling us the truth. They should tell us the cost of refining crude locally. All deceit. I call for the resignation of all the invloved ministers and official.

  4. These are bunch of buffoons calling themselves ministers of tthe federal republic of Nigeria. These. People lacks all the moral and ethical capacities to serve Nigeria. As a matter of urgency Nigerians should call on the so called GEJ to sack the minister of Petroleum resources for failing to proper coordinate the affairs of the ministry she was in charge of, for failing to be able to quote accurately or even convincinly the numbers of litres of pms we consume daily, how can she be so dump too have negleted data, mediocrity can no longer be tolerated, she does not also understand the working capacity of our refineries, madam it is a shame on you that under your watchful eyes marketers are carting away what your ministry have subsidised for the Nigerian people ad you can open your mouth and tell us that you cannot catch, nab abd prosecute such makerters. You guys sit in FEC meetings to discuss rubbish and laugh at eachother at the expense of fellow Nigerians and you called yourselves goverment. This takes me to Minister of defence, President Jonathan I am restraining myself from using abuse words on you in a public domain, you sorrounded yourself with the most incompetent set of Nigerians and you said you are running a goverment. This people will make you fail and you will become a laughing stock soon, with the alacrity we demand you sack your minister of defence, this man does not potray any iota oof intelligence to qualify him to be in this position, the people you have on board lacks team spirit, they only work together to steal but not to serve there country, dishonourable minister of defense, shame on you, your government provides palliative measures in the name of subsidy and you watched faile because you cannot secure your countries borders, you are intellectually incapacitated in terms of the technicalities required by you to do your job. You are a disgrace to the entire nation. On the issue of Hon minister of labour, sir you must feel honoured that you are called to come and serve the honourable people of Nigeria, but your utterances have writtten your name in dust and the wind of change shall blow your prosperity away. I have little words for you Monkey ruler! As for madam NOI, silence we shall be, because soon the wind shall blow and we shall see the anus of the chicken

    • I like ur comment but wat I find disturbing about it is the way u attack the defence minister. I agree with you for his incompetence in handling the security of the country infact he shld be sacked but this writeup is not even about him, but the ministers of finance and petroleum!

  5. If Nigeria is a human being and 2 say a word, Nigeria wil be crying all thru bcos of wat Her sons and and dotas ar doing 2 Her. Which way Nigeria, My fathers Land.

  6. If Nigeria is a human being and 2 say a word, Nigeria wil be crying all thru bcos of wat Her sons and and dotas ar doing 2 Her. Which way Nigeria, My fathers Land. Arch Obinna Nwaloka

  7. Waooooh. This revelation is overwhelming. In the first instance,i implore the autorites to suspend with immediate effect the minister of petroleum resouces,NNPC GM,PPPRA executive . So as to not compromise this investigation. They av brought so much hardship to over 160million nigeria through deciet and embezzlement of public fund.

  8. Infact these people are the greatest FOOLS we ever had in this nation. They are pretenders thinking that nigeria will not know of their mischievous, may God punish their GENERATIONS in double folds. When you are given power and you cannot account for your office, it is a big shame. They(ministers concerned: finance, petroleum,defence, and labour) should be SUSPENDED for now for easy PROBE.

  9. It’s quite pathetic, just tell me how can a minister of petroleum not know how many litters of fuel Nigerian’s consume daily? To crown it all she speaks with too much arrogance and impunity. As for minister of finance she lacks the charisma and will power to administer her responsibility. Mr president tour ministers are all fake. Think twice they will eventually rubbish your administration.Good for nothing and corrupt ministers.

  10. Is this really true? Nigerians what is the way forward? We must not allow this people to feeding on public fund meant for the welfare of the masses

  11. hat an embarrassment to Fed Exco championinng subsidy removal, which exposed Diezani etc Madueke dumbness not to understand a ministry she has been running for 2yrs.T/4, the federal government HAVE no reason to remove fuel subsidy as cash flow accrued into her accounts is her transparency problem.

  12. If President Jonathan does not ask these Ministers to resign then it will be obvious that he authorized it because all information comes to him at the end of the day.

  13. Nigeria, I believe I didn’t arrive here by error but very sure it will be better. Sincerely pray God’ll 4gv our leader. I think its high time we began to sing d 2nd stanza of our national anthem, espaeially, “…guide our leader right, help our youth the truth to know”.

  14. A teacher who doesn’t know the number of students in her class is a nonentity. The head of the school is the biggest nonentity. This goes to show the calibre of people who can’t take full responsibility of the office they hold, yet call them leaders. How on earth can our president deny knowledge of all these facts, if he’s not part of it. Yet,they’ve all been telling us what they expect us to believing, deceiving us and stealing our money. This is double jeopardy on us as a nation. It’s my prayer that these investigations won’t be a facade, but that God’ll grant the adhoc committee the knowledge to dig deep into all these dealings. Nigerians deserve to know the truth and the culprits must be brought to book.

  15. Almost everybody knows that these ministers were not there based on credibility, there4, we shouldn’t expect them to exceel…
    We are lucky to have known their inadequacies and inexperiences been exposed, so early,to us, as a result of d recent FSR protest. This is to say that we acheaved a lot by uncovering some oftheir fraudelent acts. And more revelations are on d way…
    Let me also use this medium to call on each and every nigerian, to use d lessons gained from d protest, to always be more conciou of their right by being more vigilant on how our leaders manage our LG, state and FG resources.

  16. All wht I can say is, let God arise and let the enemies of this country (Nigeria) be scaterred, b/c God himself who has blessed this Nation in aboundance is tire of this type of development by our socalled leaders

  17. Its a shame that the well exposed and education do worse in handling government offices,take examples of former HOR speaker,Demiji Bankole *shaking my head*,Okojo Iweala,Mrs Madueke etc..This ministers involved should be suspended till the probes finish and offenders are brought to justice. How would a jewellery maker be given license to lift crude?Its so shameful that the reputation of Nigeria has being tarnished. Justice must prevail.

  18. …I’m an 18yrs old student of unilag. My user name should by now arouse disturbing speculations to some of you. ¶ actualy adopted that name, because it justifies my intentions against these people(the honorables). Its one of my ambitions to oneday become a politician, a president of Nigeria to be exact. I don’t talk too much, but if all these I’m hearing is true, i swear it, whenever i get there, i’ld come after their sons and daughters and they themselves…i also heard allisons’ son has a private jet now, and she also purchased a 20million euro mansion abroad. Okonjo only recently acquired a property worth 1.2billion naira, at abuja. These corrupt leaders would hear from me someday in their lives, this i promise. They would be preyed and felled like animals

  19. Lord continue to open our eyes to the individuals who fleece us of our funds, may their days be short and suffering long as they have allowed Nigerian’s to suffer.

  20. I think d president shld also resign/impeached as well as d min of information. They have failed in their role of disseminationg up-to-date/accurate information 2 nigerians. Also, Mr. President failed in proper due-diligence & authoritatively inflicting hardship on folks & taunting our rights 2 speach & movement by having soldiers around!

  21. Nigeria paid on record N1.3trillion naira for 33million litters of oil in 2011 though Ngozi claims is N1.43trillion. What we need to understand is that somehow by our calculation, 1(one)liter of fuel in Nigeria over N1million. These people are worse than armed robbers and should be shot. Talking about petroleum subsidy, their competence, dumbness or otherwise is diversionary and a waste of nor time.


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