The Economic and Financial Crimes Commission (EFCC) on Tuesday re-arraigned three oil marketers over an alleged N789.6 million fuel subsidy fraud.
The marketers appeared alongside their companies — Downstream Energy Sources Ltd and Rocky Energy Ltd — before Justice Lateefat Okunnu of an Ikeja High Court.
The marketers are facing a 26-count amended charge bordering on conspiracy, obtaining money by false pretences, forgery and altering.
The defendants were earlier arraigned on Feb.26, 2013 on an eight-count charge.
They had pleaded not guilty to the charge and were granted N50 million bail each, with two sureties in like sum.
The EFCC counsel, Mr Rotimi Jacobs (SAN), alleged that the defendants had committed the offences between March 2011 and January 2012 in Lagos.
Jacobs alleged that the accused fraudulently obtained N789.6 million from the Petroleum Support Fund (PSF) for a purported importation of 14.2 million litres of petrol from Europe to Nigeria.
The huge amount made in fuel business is made from turn over and not from profit per unit sold; as you well know Nigeria is a largely populated nation and consuming several liters of fuel on a daily basis nationwide and that’s an advantage to every importer/ marketer and they know this; that’s why allocation for import is highly sorted for by many.
The quantity of product imported is enormously large and based on allocation. You can imagine importing 5,000 metric tones of fuel for purpose of receiving subsidy that is almost like 6million liters. Getting this into over 300 trucks has a multiplying effect on your bank account on a daily basis as these fuel roll out from filling stations.
according to Hope Eno, a petroleum Engineer by study, If you are making just five naira per liter plus or minus every expenses, you just need to multiply the five naira by the number of liters that will come out of the number of metric tones you are allocated. I guess you should do the calculations yourself to determine whether you want to try this business or not.
Don’t forget the minimum allocation any individual can get is 30 metric tones and the 30 multiplied by about 6 million liters, I guess you are already sweating, doing these computations because of the enormous gains involved. You can see why so many guys up there are interested in the subsidy stuff, so much cash to make not only for those who have the license to import, but also for those who facilitate deals, simply find out how?
Well that not all.
Remove oil subsidy completely and cases like this will cease to exist.