In a revealing interview with Channels TV, former Governor Isa Yuguda exposed the fraudulent nature of the fuel subsidy in the previous administration. He claimed that individuals made money from fictitious pipelines in Lagos and Warri. Yuguda revealed that he and his colleagues urged the former president to remove the subsidy, as they were tired of profiting from the scam.
As the chairman of a committee tasked with investigating the subsidy regime, Yuguda discovered the extent of the deception. He expressed sadness in sharing what he witnessed, disclosing instances where subsidy claims were made for pipelines that never existed, either for finished products or crude oil transportation from Kaduna or Warri.
When asked if the Nigerian National Petroleum Corporation (NNPC) was involved in the fraudulent claims, Yuguda replied, “Of course. Who else is doing it? Those involved in the subsidy scam simply fabricate papers and invoices to claim subsidies. In fact, there was a case where subsidies were collected for a pipeline between Lagos and Warri that never existed. This is Nigeria for you.”
Yuguda also commented on the alleged involvement of oil marketers in the scam, asserting that they were all complicit. He revealed that Nigeria subsidizes fuel for Sub-Saharan Africa and Central Africa, as a significant amount of these products are smuggled out of the country. He questioned who was truly subsidizing whom.
Despite submitting a report to the government indicting the NNPC for its involvement in the subsidy scam, Yuguda claimed that no action was taken. He expressed frustration with implementing policies in Nigeria due to entrenched interests and a prevailing cabal. He likened the situation to bunkering, stating that it could be stopped but lacked political will and was influenced by various interests.
Yuguda firmly believed that the subsidy regime should have been abolished years ago. He criticized those who advocated for its continuation, branding them as selfish individuals connected to the scammers harming the country. He recounted a conversation with a friend in the oil industry who was part of the president’s economic team. His friend had expressed fatigue with profiting from the subsidy and urged the president to remove it, having witnessed the extent of the scam firsthand.
When asked why the former president didn’t have the courage to end the subsidy regime despite the knowledge of its fraudulent nature, Yuguda suggested the presence of entrenched interests and potential risks to the president’s life as contributing factors.
