Nigerian government has unlawfully diverted $1.05 billion (N378 billion) sourced from the Nigerian Liquefied Natural Gas (NLNG) dividend funds to secretly fund subsidy payment on petroleum products, according to Premium Times.
Details of the diversion are coming amidst revelations from accusations the Nigerian National Petroleum Corporation (NNPC) has a $3.5 billion subsidy fund it is spending without appropriation by the National Assembly.
In October, a motion by Biodun Olujimi, (Ekiti-PDP) had triggered debates in the National Assembly on the purported $3.5 billion fund alleged to be managed by the state oil company.
But the NNPC said it had no such fund in its custody. Rather, it said it has a $1.05 billion fund it is using to stabilise petrol supply and distribution in the country.
While the NNPC, through its spokesperson, Ndu Ughamadu, initially claimed the corporation sourced the fund from an ‘international agency’, Maikanti Baru, NNPC group managing director, admitted last week that the money was sourced from the NLNG dividend fund.
Premium Times says it is in possession of documents which show that the fund was sourced at the height of the fuel scarcity crisis between last December and January and was secretly diverted into payments on petrol supply and distribution.
The funds came from dividends paid to the federal government by the Nigeria Liquefied Natural Gas (NLNG) company, a firm in which the government owns 49 percent equity.
The Nigerian government is represented in the NLNG shareholding arrangement by the NNPC with 49 percent stake. Other shareholders are Shell (25.6 percent), Total (15 percent) and Eni (10.4 percent).
Dividends from the gas firm are meant to be shared by the federal, state and local governments of Nigeria. The funds are supposed to be paid into the Consolidated Revenue Fund of the Federation rather than spent unilaterally by any tier of government.
The paper says it has now confirmed that the President Muhammadu Buhari-led federal government unilaterally — without required consultation with states and the national assembly– tampered with the NLNG funds. That was also done without the mandatory appropriation by the National Assembly.
Nigerian lawmakers say by his action, President Buhari has violated the nation’s appropriation law, and has therefore committed impeachable offences.