Presidential Committee On Fuel Subsidy Clears A-Z Petroleum

Presidential Committee On Fuel Subsidy Clears A-Z Petroleum

By Pius Godsday | Politics Reporter on December 10, 2012
Aigboje Aig-Imoukhuede Presidential Committee on Fuel Subsidy
Aigboje Aig-Imoukhuede, former CEO of Access Bank and Presidential Committee and Fuel Subsidy Chairman in an undated photo

The Presidential Committee on Verification and Reconciliation of Fuel Subsidy Payments, headed by Mr Aigboje Aig-Imoukhuede, has cleared A-Z Petroleum Products Limited of any infraction in the fuel subsidy issue, in its report on PMS Shore Tank Discharges and Sales for 2011.

In its 25-page report, the Presidential Committee noted on page 15 that A-Z Petroleum Products Limited “engaged in 16 transactions and claimed a total amount of N19,345,183,381.31” and that “all 16 transactions were verified as legitimate.”


The Committee’s report had two categories of findings, namely: “Transactions Not Verified as Legitimate” and “Transactions Verified as Legitimate.” Under the first category, there were 196 transactions with a total amount of N232,192,575,214.20.

The verified and legitimate transactions were 661 with an amount of N880,644,248,166.23. A-Z Petroleum Products Limited falls under this category.

In all, there were a total of 857 transactions valued at N1,112,836,823380.43.

President Goodluck Jonathan constituted the 15-man Presidential Committee on Verification and Reconciliation of Fuel Subsidy Payments on July 5, 2012 to address the concerns about the operations of the Petroleum Import Subsidy Scheme.

In its report to the President, the Committee identified various infractions committed by Oil Marketing and Trading Companies (OM&T) relating to Premium Motor Spirit (PMS) import subsidy claims in 2011 and recommended various actions against those involved.

The Committee made two key recommendations: 100 percent verification of shore tank certificates and a forensic examination of Oil Marketing and Trading Companies (OM&T) PMS sales proceeds. On August 27, 2012, President Jonathan approved that the Presidential Committee commence the verification of the shore tank and sales proceeds records of 114 OM&Ts. The Committee was also empowered to engage the services of professional auditors to assist in field examinations of OM&T records and operations.

The report noted on page 10 that “the Committee established a methodology to enable it to identify whether PMS was actually imported and discharged into on-shore tanks in Nigeria and whether funds lodged in bank accounts represented PMS sales proceeds (as opposed to lodgements from other sources). The Committee was mindful of the fact that its report had revealed a number of transactions where transactions were falsified to obscure the fact that PMS was neither discharged into on-shore tanks nor sold in Nigeria.”

Reacting to the clearance, the Chief Executive Officer of A-Z Petroleum Products Limited, Chief (Dr) Alexander Chika Okafor, OON, noted that it was in line with the company’s ethics and standards to follow due process in all its transactions and play according to the rules and laws of the industry and the nation. He thanked President Jonathan for setting up the Presidential Committee on Verification and Reconciliation of Fuel Subsidy Payments, to ensure the promotion of transparency in the oil sector.


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