N6trn Fuel Subsidy “Not Sustainable” -Hameed Alli

Comptroller General of Nigerian Customs Service (NCS), Hameed Alli, has described the over N6 trillion allegedly being paid as fuel subsidy as not sustainable.

The NCS Boss, made this known, while appearing before the House Committee on Finance, chaired by Hon. Abiodun James Faleke to defend the NCS presentation on the 2023-2025 Medium Term Expenditure Framework (MTEF) and Fiscal Policy Paper (FSP).

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Alli said, the over N6 trillion allegedly being paid as fuel subsidy on Premium Motor Spirit (PMS) in 2022 fiscal year by Nigerian National Petroleum Corporation (NNPC) Limited is not sustainable.

According to the NCS Boss, “if by their calculation, the country consumes only 60 million litres of PMS daily out of the 98 million litres of PMS per day, where does the remaining go and why would you allow the release of 98 million litres per day?

“The alleged 98 million litres of PMS daily consumption rate allegedly being brandished can not be substantiated scientifically, adding that over 38 million litres of PMS released daily in excess of actual consumption into the Nigerian market finds its way out of the country.

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“The over N11 trillion we are going to take as debt, more than half of it is going for subsidy. The issue is not about smuggling of petroleum products. I have always argue this with NNPC.

“Scientifically, you cannot tell me that if I fill my tank today, tomorrow, I will fill the same tank with the same quantity of fuel. If I am operating a fuel station today and I go to Minna depot, lift petrol and take it to Kaduna, I may get to Kaduna in the evening and offload that fuel.

“There is no way I would have sold off that petrol immediately to warrant another load.

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