Petroleum Minister Alison-Madueke Indicted Over N310billion Illegal Subsidy Payment On Kerosene -PREMIUM TIMES

Minister of Petroleum, Diezani, Alison-Madueke
By Bassey udo

Subsidy payment was reinstated in spite an existing presidential directive against it. And targeted consumers didn't benefit from scheme

The Kero-Direct scheme initiated by the Nigerian National Petroleum Corporation (NNPC) in July 2011 to help distribute household kerosene (HHK) to consumers nationwide may have been a scam to defraud Nigerians and extort money from the Petroleum Support Fund (PSF), the House of Representatives Adhoc Committee on Fuel Subsidy Probe has said in its report.

Under the scheme, which enjoyed the full support of the Minister of Petroleum Resources, Diezani Alison-Madueke, the Pipelines and Products Marketing Company (PPMC), a subsidiary of the NNPC in charge of petroleum products marketing and distribution, provided the product sold to end users at N50 per litre using the facilities of an independent marketer, Capital Oil and Gas Industries Limited.

But the committee said the scheme was not only implemented in defiance of a subsisting presidential directive removing kerosene from the subsidy regime, but also designed in a way the product would not get to the target beneficiaries at the approved price.

The committee found that the product, which was supposed to be distributed to consumers nationwide at the subsidized price, sold only at the 36 NNPC mega stations out of over 24,000 retail outlets across the country.

Outside the mega stations, the committee said there was massive diversion of the product, which was resold to consumers at between N130 and N150 per litre in the open market, because the NNPC chose to use operators that did not have the outlets to handle the distribution.

Consequently, the committee has asked the NNPC to refund the over N310.42billion deductions it took illegally as subsidy arrears for kerosene supplied in 2009 and 2010, pointing out that this was made in spite of a presidential directive specifically addressed to the minister, who is also chairman of the NNPC Board of Directors.

“The Committee could not find any reason why the minister, if convinced on the need to reinstate subsidy on kerosene, did not take any action on that, instead of condoning the illegal payments,” it said.

It was gathered that late President Umaru Musa Yar’adua had in memo Memo No. SH/PSP/24/A/819 of June 17, 2009 to the Minister of Petroleum Resources directed that subsidy on kerosene be removed, as the continued payments by government did not get to the intended beneficiaries.

In spite of the directive, the NNPC reportedly pressurized the Pipelines and Products Pricing Regulatory Agency (PPPRA) into processing the payment of subsidy arrears on the product, despite that consumers hardly got the commodity at the controlled price in the open market.

“When the Ministry of Petroleum Resources discovered that the removal of subsidy on kerosene was not expedient, it should have gone back to the President for the vacation of the directive,” the committee noted in its report. “Having failed to do that and with the evidence that the product was never sold at N50 (apart from the 36 mega stations) since 2009, there was no basis for seeking any vacation of the order in 2011.”

The committee also criticized the agreement entered into with Capital Oil & Gas Limited for the use of its tank farm to store about 94,330,030 litres of products, which was later confiscated and sold off by the company to recover a nine-month storage fees debt by NNPC.

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Fellow Nigerians. Don't believe everything you read on this forum, especially from Premium Times. There reports are always full of outright lies and half truth just to provoke Nigerians. Believe Sahara Reporters and Premium Times at your peril. Shine your eyes

sahara reprters is a huge

sahara reprters is a huge shame, a medium that some uncivilised nigerians have created to make a mockery of the govt. Why fight a govt that came and met corruption, and is doing all in it's powers to reduce and if possible amelorate this menace that has eaten up our institutions. kudos to the present regime and it's efforts to undo corruption.

deliver us

this minister can deliver, let her stop taking acohol and focus on her job

best minister

i strongly belive she's doin a great job in the oil ang gas sector....let her continue with her good works..thumbs up

say positive things about ur

say positive things about ur self. remember this is our only country. pray and b hopeful. some of this write ups are politically motivated. one naija

true talk, there should be

true talk, there should be facts to support this without which is more or less a rumour.

let her work

i personnally feel the minister should be givin a chance...she's doin a great job..thumbs up

Leave Ms D alone

For 8 years, OBJ managed the NNPC. No questions asked. 8 years before that the Hausas managed the NNPC. Nobody said a word. Ms D is out ther looking out for the masses and you guys are kicking up the storm. Leave her alone. She is doing a fantafaboulous job. Up Ms D. We love you.

Diezani is the one

No doubt. She is simply the best.

Its So Sad: some comments

Are annoying . How will Nigeria change when the educated in diaspora think like this
Is it because u enjoy the loot together with the minister or looting is turn by turn rota.
DERI, U R SO DELUDED, FILLED WITH HATE, NO LOGIC REASONING in ur comments as applied to current problems facing Nigeria. Is just like saying LET'S PERSECUTE THE GERMAN'S FOR CRIMES COMMITTED BY THE NAZI 70 YEARS AGO.
If u r paid to do that, it's totally understandable as being Professional otherwise U R a FUNDAMENTALIST with NO CAUSE in the making.


pls give this women a break and let her do her job. stop distracting and slowing down her work pace.

Now we have the final report!!!

unfounded allegations and witch hunting indictment of Diezani Alison Madueke by the House of Representatives Adhoc Committee on Fuel Subsidy Probe goes to further highlight a visibly sponsored attack on her by an organized Cartel in the Oil and Gas industry. It is obvious that as soon as Madueke was penciled down as minister of petroleum resources, she suddenly became an object of several hate-filled publications and litigations sponsored by this cartel in the Oil and Gas industry and some Politicians who were determined at stopping her from assuming the position of Minister of Petroleum Resources...they are obviously not giving up...why do they resent her?
we all know she occupies a very sensitive ministry, instead of the attack all hands should be on deck to ensure the smoooth operation of that sector.

@ Deri: Faruk Lawal Cmte. Studied The 2009-2011 Subsidy Regime!

Fool, there you go again, subsidy scam dates back to ugly OBJ era. The Faruk Lawal Committee studied only the period covering 2009-2011 as clearly stated, but you alone will profer your usual gibberish that "it satrted before Dumbo" therefore, it must be condoned. Late President Yar'Adua ordered it stopped, your sister Diezani continued the scam with the acquiescence of Dumbo, so now we know how he financed his fraudulent election. Marrying an Ibo does not make her an Ibo, her children may wear the Red cap but the "corrupt" person imported her aborigine characters with her and that cannot be the fault of her hubby. However, Mazi Madueke cleaned her up real good as you can see. And that's why she's neither complaining nor divorced. Vuvuzela Deri, how many companies on your fraudulent list made the Commttee's list? How much dem dash Dumbo? Fire Diezani and fire himslf. This government is rotten, Dumbo stinks of corruption! Racist fool, crumb-catcher.



oh God pls save us

Everybody should join hands and pray for God to grant our leaders wisdom on how to manage our God's giving natural resoruces

Why is it that we,Nigerians

Why is it that we,Nigerians will be using paracetamol for stomach aches? is it a crime that she is a woman? what is wrong with our level of our thinking? She is doing her job and all she want us to do in return is a chance and our trust.

most of all this writing are

most of all this writing are merely to distract and slow down projected agenda.they will just keep trying to convincing us to vote out people that are workng day and night to move this country forward while d bad eggs are busy paiding for such write ups . dont belv all this writings pls


We don't have to panic, let's just keep the faith on and pray all is going to be for our own good.


please make sure you have your facts properly before crucifying an innocent hard working woman.


well i think we have to be patient before jumping into snappy conclusions concerning this issue on ground.

i dont tink ur mentally

i dont tink ur mentally sound, where have u seen that total violent uprising that involves mass klling is the answer to countries problems.dont u no d defination of government. collective support from evry well meaning Nigerian is d only way we can move forward not causing violent


can anyone please name at least 5 countries without corruption, and I’ll pay the sum of 50, 000 into his persons account right away. Let me let all of us know something whatever the GEJ and his cabinet is doing now is for our own good. OBJ increased pump price from 65 to 95 naira per litter and what is ever body doing now, we are all moving on with our personal life, the so call EFCC have a list of Ex-ministers and former heads of state who almost took the country to the brink of extinction seating in there large mansion ordering boys around like robot, destroying things, cursing kayos before they leave while they watch from a distance with an eye open. WHY WE NO DA GO CATCH THOSE ONCE OOOOOOOOOOOOOOOOOOO, petroleum minister abeg the fuel wa we da see da buy every day without fighting inside queue na one big thing wa we NIGERIANS no go forget. GOD BLESS U

kindly allow this woman to

kindly allow this woman to work before she drops dead what is the possibility you can do what she has done. come to think of it which petroleum deemed it fit to set-up a committee to look into maters of nation interest.

Since allison-madueke assumed

Since allison-madueke assumed office, we have witnessed price stability and uninterrupted supply of fuel, thereby denying the powerful brokers their usual practice of causing artificial scarcity. All the past bottlenecks created by the oil cartel have been neutralized because of the absolute premium she placed on honesty and transparency in the system. But in spite of her commitment to service delivery, her political detractors and traducers remain unrelenting in their vilification of her person and office.this is not the first time some elements in this country are accusing the petroleum minister but we all no she will scale through

ladies and gentlemen prior to

ladies and gentlemen prior to the investigations and reports made by the Ad hoc committee set-up by the minister of petroleum and the house, it is awesome to note that resources are spent to cope the menace in the petroleum industry. the question is "when did the products and resources misappropriation came up ,who was in charge of directives and how did the products not get to the end point? The Minister of Petroleum, Diezani, Alison-Madueke has proved a point and a move cope solve the problem at hand.

Fuel Subsidy Probe

In spite of the unbridled inundation of bifocal reactions on the fuel subsidy probe, with about 90% of the on line traffic casting negative aspersion on the Petroleum Minister, a few of us who are rationally unsentimental acknowledge some of the omissions and commissions of the petroleum minister. But we intentionally forget to see her achievements - local content infusion, disappearance of petrol queues.

Since assumption of office as

Since assumption of office as minister of petroleum,allison-madueke has been very active.she is transforming the oil and gas sector,involving local oil investors,reducing petrol and kerosene scarcity,She is to us and majority of Nigerians a rare woman of substance and of cherished value.
This deliberate act is intended to deny Nigerians the benefit of her benevolence, honesty, traits, doggedness, selflessness, service delivery drive and unselfish service to humanity, but we know why these few but powerful business moguls, who are already entrenched in the system, would stop at nothing to remove the target they perceive as too much disposed to implementing the transformation agenda of Jonathan's Presidency, which in effect would revolutionize the sector and by extension better the lot of the common man. it pure blackmail,it has happened before

The scam has been going on

The scam has been going on since,,, even before OBJ so why should she be the scapegoat? We wouldnt even know about it if she were as dubious as the rest of them.

we should at least be

we should at least be grateful to God for a wonderful person like Alison madueke, some people are always attached to the negative thing in life, they don’t look for something good about an individual only the negative aspect. If you are interested in here offices why not wait till her tenure is over then you can fight for the seat instead of raising false alarm. Remenber say when u point person with one finger the rest they point back at U.


In the trail of petroleum ministers in nigeria,Alison Madueke have shown a distinction performance and will do more if the pessimistic nigerians who have dedicated themselves to criticizing not just the petroleum minister but the Goodluck jonathan administration in general

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