SUBSIDY FACTS

·         90% of petrol consumed in Nigeria is imported due to inadequate and limited local production.

·         This importation is carried out by NNPC, MOMAN, DAPPMA and other independent marketers under permits issued by PPPRA.

·         The PPPRA has a 26 member Board which inter alia includes CBN, Finance, NECA, NLC, TUC, PENGASSAN, NUPENG, NARTO, NURTW, Nigerian Guild of Editors, NACCIMA, MOMAM, DAPPMA, IPMAN, and the Media amongst others.

·         The PPPRA pricing template was established by its Board and was utilised to calculate on a daily basis the landed price of regulated products. This formed the basis of subsidy claims made by participants under the Petroleum Support Fund.(PSF) (www.pppra-nigeria.org).

·         The PSF is funded by the Federation of Nigeria, administered by the PPPRA and supervised by the Ministry of Finance.

·         The difference between the higher cost of imported PMS as ascertained by PPPRA and the then lower regulated pump price of N65 per litre was the subsidy that was repaid to importers after being subjected to an audit by Government appointed auditors. For example, as at 6 Dec 2011, the total cost of PMS imported product is as detailed below;

·         Description	·         PMS (N/ litre)
·         Total Cost of Imported PMS (A)	·         N141.38
·         Regulated Pump Price (B)	·         N65.00
·         Subsidy Claim (A-B)	·         N76.38

ANY MEMBER OF THE PUBLIC WHO BOUGHT PETROL OR USED PETROL BOUGHT AT N65 PER LITRE BENEFITED FROM THE PSF AND WAS A BENEFICIARY OF  SUBSIDY.  Our members who participated in the Subsidy Fund were merely claimants who were entitled to reimbursement of costs incurred in the importation and delivery of petrol into Nigeria. Claiming subsidy under the PSF for reimbursement is neither an unwholesome act nor is it illegal. A change in the guidelines of the PSF in particular Part V, in 2007, allowed companies with nothing more than a throughput agreement to operate under the PSF as opposed to only companies that owned storage of minimum 5,000 metric tons and retail stations. Unfortunately, this saw the emergence of ‘briefcase ’  companies (with no asset base nor accountability) in the PSF scheme. MOMAN members who have extensive storage and distribution capacity have invested massively in retail distribution infrastructure and assets nationwide, ensuring adequate petroleum products supply to all parts of the Federation and gainful employment for thousands of Nigerians.

RECENT PUBLICATIONS AND STATEMENTS REFERRING TO ALL CLAIMANTS UNDER THE PSF AS MARKETERS AND A ‘CABAL’ ARE FALSE, UNFOUNDED AND WITHOUT ANY MERIT WHATSOEVER.

MOMAN has always been a proponent of the total deregulation of the downstream sector and viewed the Subsidy Scheme as an intermediate measure. As responsible entities, we hold efficient utilisation of national and corporate resources very dearly. We welcome any inquiry or investigation into our activities under the PSF which will no doubt establish utmost good faith on the part of our members. Furthermore, MOMAN commits to future participation in any such scheme on the basis of total transparency and accountability. MOMAN is a law abiding body and remains committed to supporting the Nigerian People and the Federal Government in ensuring petroleum products are made available nationwide.