The governor of Nasarawa State, Mr. Abdullahi Sule, criticized the Muhammadu Buhari administration for spending over $19 billion in eight years to repair Nigeria’s refineries without achieving significant results. Speaking on Channels Television, Governor Sule, who was previously the Managing Director of African Petroleum (AP), stated that the process of fixing the refineries was mismanaged.
Mr. Mohammed Shehu, Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), also expressed support for the removal of fuel subsidy, citing the lack of transparency in the scheme.
Nigeria’s aging refineries, which were constructed in the 1960s, 1970s, and 1980s, have consumed billions of dollars in Turnaround Maintenance (TAM), but the expected outcomes have been largely disappointing. However, the claim made by Governor Sule that over $19 billion was spent by the former president could not be independently verified.
Governor Sule explained that he had always supported the removal of subsidy because he believed there was massive fraud involved. He recalled that over 22 years ago, when he was the Managing Director of AP, he raised concerns that Nigeria could not consume 30 million liters of petrol per day, a figure that had now risen to about 70 million liters per day, which he deemed impossible.
He further stated that Nigeria had been subsidizing petrol for neighboring countries, which has led to an energy crisis in those countries after Nigeria withdrew its own subsidy.
The governor emphasized that although several licenses were issued in the past for the construction of refineries, they did not succeed due to the nature of the industry. He believed that subsidy should have been removed in 2015 when crude oil prices plummeted.
Governor Sule pointed out the mismanagement of funds allocated for refinery repairs. He highlighted that often, money was released to fix one part of the refinery, but the funds were distributed among all the facilities, resulting in no substantial progress.
While supporting President Bola Tinubu’s recent removal of subsidy, Governor Sule lamented the lack of reliable data on Nigeria’s fuel consumption, which he believed justified the removal of subsidy.
The governor argued that market forces should determine fuel prices, as it would reduce smuggling and allow Nigeria to determine its actual consumption figure.
Meanwhile, Chairman Mohammed Shehu of the RMAFC backed the removal of fuel subsidy due to the lack of transparency in the scheme. He disclosed that about N8.48 trillion, which was reported as subsidy claims by the NNPC, remained unreconciled by the RMAFC, Office of the Accountant General of the Federation (OAGF), and the NNPC.
Shehu commended President Tinubu for ending the subsidy regime, which he believed would free up funds for critical national development projects. He also expressed optimism that the operational Dangote refinery would eliminate the need for imported fuel.
The RMAFC chairman urged the new administration to devise strategies to mitigate the impact of the new policy and to hold economic saboteurs accountable.
He emphasized that the payment of large amounts to a privileged few in the name of subsidy was draining the nation’s scarce resources and hindering economic growth and development.
