Non-payment of subsidy, looting of $12b domestic gas fund caused fuel scarcity – APC

Fuel Crisis in Nigeria

The All Progressives Congress, APC, Tuesday listed the looting of the $12 billion domestic gas fund under President Goodluck Jonathan’s watch, the failure to pay fuel subsidy and the cost of interests on bank loans to oil marketers, as the real cause of the current fuel scarcity in the country, adding that this had made it impossible for marketers to begin another round of importation of refined petroleum products.

This was disclosed in a statement issued in Dubai the party’s National Publicity Secretary, Alhaji Lai Mohammed.The party said the PDP and the Jonathan Administration decided to divert attention from those problems by accusing the opposition of being responsible for the scarcity, calling it a most laughable and irresponsible statement by a sitting government that is always so eager to blame everyone but itself for the nation’s woes.

The statement said the Minister of Finance, Ngozi Okonjo-Iweala had, in February, promised to pay all subsidies owed to the marketers then in the sum of N264 billion, along with the accrued interest, adding that it was the failure of government to pay that made it impossible for the oil marketers, who are already being owed heavily, to finance another round of products importation.

”The truth is that this profligate government has run Nigeria aground, and the oil sector, whether upstream or downstream, has particularly suffered hugely. The quantity of petroleum products that was imported has almost been fully consumed, without fresh products being brought in to augment supplies that have now fallen well below re-order level.

”The implication is that in addition to worsening power supply, crumbling prices of oil at the international market, weakening Naira and unprecedented corruption, Nigerians – who routinely provide their own electricity to power their homes and business, now have to face another round of government-imposed hardship with the ongoing fuel scarcity,” the party said.


The party further said that the current fuel crisis would not have reached the stage it is in now if the $12 billion domestic gas project fund had not been looted under President Jonathan’s watch, adding that with the project being executed, many vehicles, cooking stoves and generators would have been converted to use gas to reduce the importation of PMS, diesel and kerosene, and gas would have been available to fire the gas turbines at power stations while more power would have been delivered to the national grid.

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