The Managing Director of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Ahmed Farouk, is under scrutiny for plans to pay more than ₦200 billion in outstanding bridging claims to oil marketers. Bridging claims are government payments that compensate marketers for the cost of transporting petroleum products, thereby helping to maintain uniform pump prices nationwide. The proposed payment would cover legacy obligations for 2023, 2024 and 2025.
Industry sources, cited in a statement from the Dangote Group, have raised concerns about the lack of verifiable data to justify a significant portion of these claims. Economists and sector analysts note that Nigerians rarely benefit from bridging claims, as petroleum products are often sold at higher rates in various regions. In some cases, marketers submit claims that do not correspond to the levies paid per litre, with discrepancies of up to 47 %. The move to settle approximately ₦250 billion in legacy bridging claims, despite the regulator’s inability to provide empirical data, suggests potential irregularities.
Aliko Dangote, President and Chief Executive of Dangote Industries Limited, has filed a corruption petition with the Independent Corrupt Practices and Other Related Offences Commission (ICPC). The petition alleges abuse of office, corrupt enrichment and unlawful diversion of public funds by Farouk, including spending 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 await a formal investigation rather than engage in public debate. The ICPC’s inquiry will examine the claims and give Farouk an opportunity to clear his name. These developments have heightened concerns about corruption and accountability in Nigeria’s petroleum sector, underscoring the need for greater transparency and oversight in government payments and regulatory practices. As the investigation proceeds, it is likely to have significant implications for the management of Nigeria’s petroleum industry and the country’s broader anti‑corruption efforts.
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