The Managing Director of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Ahmed Farouk, is under scrutiny for plans to pay over ₦200 billion in outstanding bridging claims to oil marketers. According to a statement from the Dangote Group, industry sources have raised concerns about the lack of verifiable data to justify a significant portion of the claims. Bridging claims are government payments made to oil marketers to compensate for the cost of transporting petroleum products, ensuring uniform pump prices nationwide.
The planned payment, which covers legacy obligations for 2023, 2024, and 2025, has sparked concerns among economists and sector analysts. They point out that the benefit of bridging claims is rarely enjoyed by Nigerians, as petroleum products are often sold at higher rates in various parts of the country. In some instances, marketers submit bridging claims that do not match the levies paid per liter, with discrepancies of up to 47%. The current move to settle approximately ₦250 billion in legacy bridging claims, despite the regulator’s inability to provide empirical data, suggests potential irregularities.
A corruption petition filed by Aliko Dangote, President and Chief Executive of Dangote Industries Limited, with the Independent Corrupt Practices and other Related Offences Commission (ICPC) alleges abuse of office, corrupt enrichment, and unlawful diversion of public funds by Farouk. The petition claims that Farouk spent over $7 million on his children’s education in Switzerland without a lawful source of income. The ICPC has confirmed receipt of the petition and announced that investigations have commenced.
Farouk has described the allegations as “wild and spurious,” opting to wait for a formal investigation rather than engaging in a public debate. The ICPC’s investigation will examine the claims and provide an opportunity for Farouk to clear his name. The developments have sparked concerns about corruption and accountability in Nigeria’s petroleum sector, highlighting the need for transparency and oversight in government payments and regulatory practices. As the investigation unfolds, it is likely to have significant implications for the management of Nigeria’s petroleum sector and the country’s efforts to combat corruption.
