The Nigerian House of Representatives has set up an ad-hoc committee that will investigate the petroleum products subsidy regime from 2017 to 2021.
The committee was setup after Honourable Sergius Ogun disclosed that component costs in the petroleum products subsidy value chain claimed by the Nigerian National Petroleum Corporation (NNPC) is highly over-bloated while the transfer pump price per litre, used by the NNPC in relation to Petroleum Pipeline Marketing Company (PPMC), is underquoted.
He alleged that this is fraudulent, adding that the subsidy regime has been used by the NNPC and other critical stakeholders to subvert the nation’s crude oil revenue to the tune of over $10 billion.
The committee is expected to report back to the House within eight weeks for further legislative action.