1 June 2012

Nigeria: FG Lost U.S.$65 Million to NNPC's Inefficiency in Three Years - KPMG

A report by the KPMG audit firm revealed that the Federal Government lost $65 million to the alleged inefficiency of the Nigerian National Petroleum Corporation (NNPC) in handling demurrage from 2007 to 2010.

Appearing yesterday before the Senate Joint Committee on Petroleum, Appropriation and Finance probing the fuel subsidy regime, KPMG representative, Dimeji Salahudeen, said, "NNPC is responsible for 60% market share in terms of products brought into the country. over $198million was paid out as demurrage within the period. We did an analysis of the companies that recorded the bulk of the payment.

We determined on average how long it took the NNPC to clear the cargo and we discovered that NNPC has room to be more efficient on how it plans and delivers the products it brings into the country".

He further revealed that the Petroleum Products Pricing Regulatory Agency (PPPRA) overpaid fuel marketers by N25 billion and allowed unregistered companies to import fuel.

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