The Federal Minister of Finance, Ngozi Okonjo Iweala, has reported a reduction of N1.2 trillion between subsidy payments in 2011 and 2012.
The Finance Minister who resumed office in the midst of a murky and extremely corrupt subsidy regime made it one of her top priorities to clean up the system.
According to figures from the Finance Ministry, subsidy payments in 2011 were N2.2 trillion. In 2011, the payment had shrunk to N917 billion, representing a savings to the Nigerian federation of N1.2 trillion.
Speaking on the development, Okonjo Iweala explained, “In 2011, there was a huge public outcry. As a result, this administration has worked hard to clean up the process of subsidy payments. In response the ministry set up the Aig-Imoukhuede committee which investigated the subsidy payments. The committee was later elevated to a Presidential Committee by Mr President.”
She said the Finance ministry hired new auditors and put in place different checks and balances to sanitize the sector, adding that “ last year, we brought subsidy payment down to about N950 billion, and we expect that this year, we will pay about N971 billion.
“I believe this is a huge achievement for which the Jonathan administration deserves some credit, something that should make Nigerians proud of their government,” the coordinating minister noted.
The statement from the ministry stated further that “in furtherance of the Jonathan administration’s commitment to transparency and accountability in the management of fuel subsidy payments, the Federal Ministry of Finance has released the sum of N46,764,191,448.16 as latest payment to oil marketers whose claims have successfully gone through the verification process.
“This means that, so far in 2013, a total of N287,351,770,696.16 has been paid in verified claims to verified marketers,” the statement signed by Paul C Nwabuikwu, Special Adviser to the Coordinating Minister noted.