Friday, 24 August 2012

Subsidy Fraud Fallout: PPRA Moves to Streamline Fuel Imports

The Petroleum Products Pricing Regulatory Agency (PPPRA) has commenced the process of pre-qualification and registration of all existing and intending oil-trading companies that supply petroleum products to oil-marketing companies in Nigeria. This latest development is part of the renewed efforts of the agency to sanitize the subsidy scheme and ensure that only credible companies participate in the scheme in view of the abuse of the system that has led to the indictment of 25 oil-marketing firms for the abuse of the Petroleum Support Fund (PSF) scheme by the Aigboje Aig-Imoukhuede presidential committee.
Under the current bid by the PPPRA to sanitize the system, pre-qualified and registered companies would be under obligation to ensure that only reputable foreign oil traders with record of accomplishment in the fuel supply business are allowed to participate in the PSF scheme. 
PPPRA gave the oil-trading companies till September 7 to submit certain relevant documents for pre-qualification and registration. The documents must contain the name of the company; certificate of incorporation; share capital; country of origin and registration; names and profile of directors; Nigerian subsidiary, if any; and share capital. The companies must also provide information relating to their trading experience within the West African coast sub-region; details of indictment in the past, if any; main and address of trading offices; email address and annual turnover.

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