Implement Recommendations of Fuel Subsidy Ad Hoc Committee, ERA/FoEN urges FG

Nigerians will not accept any attempt by the executive arm of government to impede the implementation of recommendations of the House of Representatives Ad Hoc Committee on Fuel Subsidy Management, the Environmental Rights Action/Friends of the Earth Nigeria (ERA/FoEN) has said.

The Committee had among others, endorsed a refund of over N1 trillion allegedly misappropriated or stolen under the guise of funding subsidy for petroleum products.

ERA/FoEN insistence on the implementation of the recommendations is coming on the heels of media reports credited to the Chair of the committee, Hon. Farouk Lawan that powerful figures in government had mounted pressure on the committee to spare some players in the fraudulent subsidy monies management process which he described as “a bazaar”.


In the Executive Summary of the report which was released last week, the panel established that the Nigeria National Petroleum Corporation (NNPC) and the Petroleum Products Pricing Regulatory Agency (PPPRA) are riddled with corruption, including gross abuse of the Petroleum Subsidy Fund (PSF) and must be unbundled.

The report unearthed 15 oil marketers collected $402.2.610b as FOREX in 2010 and 2011, but did not import petroleum products. The sum of N999m was paid to unnamed entities 128 times to the tune of N127.872billion. In all, 72 companies listed under the financial forensics were recommended for further investigation with a view to establishing their culpability and recovering the sums indicated against their names totaling about N230 billion. The PPPRA is also to refund N312.2 billion for “excess payment to self”.

The Farouk-led committee therefore directed various government agencies and companies with links to top government officials to refund over N1 trillion, vowing to severe all legislative relationships with the executive arm of government if the recommendations are not carried out.

ERA/FoEN, in a statement issued in Lagos, gave thumbs up to the Farouk-led committee for what it described as a “courageous job”, and demanded that the executive arm of government demonstrate genuine commitment to its anti-corruption crusade by bringing individuals and companies that ran afoul of the law to book and recovering all the stolen monies.

“While we hail the House of Representatives for this courageous job, we are totally shocked by the shameful collaboration between government officials and their importing collaborators who have over the years stole our people blind. We will not go to bed until every dime stolen from Nigerians under the corruption-streaked so-called subsidy regime is recovered, “ERA/FoEN Executive Director, Nnimmo Bassey said.

“Aside recovery of the funds, that the committee also established that if local refineries were able to refine 235,000 barrels of the 445,000 barrels they are allotted daily, they would still be able to refine 40 million litres of petrol and 10 million litres of kerosene, vindicates our position that lies and thievery with the consent of top government officials is indeed responsible for the shortfall in supply of petroleum products across the country.”

Bemoaning the endemic corruption in the oil sector, Bassey insisted that in spite of government’s argument on the need to allow market forces determine the real cost of oil, the final computation of oil borne by consumers is yet to be arrived at and fraught with lies, as the ecological costs such as communities whose farmlands and rivers are regularly polluted without remediation have not been factored into the entire cost.

“The findings of the committee are indeed telling because we now know that it is the polluted communities in the Niger Delta and the ordinary Nigerian on the streets that actually subsidize the thieving companies and their friends in government who deploy some of their proceeds to the political parties.”

“Nigerians refuse further punishment in the much-touted fight against corruption in the fuel import scam. We register our support for the full implementation of the recommendations of the Farouk-led committee. All monies stolen must be recovered and the identified perpetrators whether politically appointed or career civil servants presiding over these events should resign or be immediately fired. Anything short of this will not be accepted,” Bassey insisted.


Philip Jakpor

Head of Media




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ERA has recently received information that a group calling itself the "Niger Delta Coalition in the Diaspora" is still engaging itself in activities and communications giving the impression that it is linked with Environmental Rights Action (ERA).

This group issues out communications using ERA's headquarter address and mail box. We have never had any ties with this group and any views, comments or opinions expressed by them is not endorsed or authorized by any member of management or staff of ERA.

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