Nigeria To Spend N17 Billion On Fuel Distribution Tracking Device
To avoid further incidents of fuel diversion that eventually lead to fuel scarcity, the Nigerian government is planning to buy fuel distribution equipment worth billions of Naira.
On Wednesday, the Federal Executive Council approved the sum of 17 billion naira for the installation of the mechanism under the Petroleum Equalisation Fund to monitor fuel distribution and eliminate subsidy fraud.
The Minister of State for Petroleum Resources, Ibe Kachikwu, disclosed this to State House correspondents at the end of the council’s meeting presided over by the Acting President, Yemi Osinbajo, at the Presidential Villa, Abuja.
He said although the project was for three years, it would start yielding results by the time the 2020 budget would be prepared next year.
The minister explained that the device would also put to an end to the conflicting figures on the nation’s actual fuel consumption per day.
He said: “The narrative is that we have all struggled with this whole subsidy payment and how much is consumed in Nigeria, volumes of products moved out illegally and the whole impact on Federation Accounts Allocation Committee.
“The essence of what PEF is doing is that this will enable us to track refined petroleum products’ movement from the point of the LC (Letter of Credit) opening from the vessels that come into Nigeria, up until the point where they are discharged into tanks in Nigeria; and from the tanks into trucks in Nigeria.
“We will also monitor the trucks till they deliver the products into the storage tanks for the filling stations and they are discharged and sold. So, that will produce a 100% holistic monitoring of these products.”
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