Reports from Nigeria indicate that around 4 million has been defrauded from the fuel subsidy fund in the past two years. A parliamentary debate on the issue will be screened live across the country.
The fuel sector probe was set up in the wake of angry nationwide protests in January after the government tried to remove a fuel subsidy. While Nigeria is a major oil producer it must import most of its fuel.
According to the BBC, €The 205-page parliamentary report uncovers a long list of alleged wrongdoings involving oil retailers, Nigeria's Oil Management Company and the state Nigeria National Petroleum Corporation.€
The BBC went on to say that, €a total of 15 fuel importers collected more than $300m two years ago without importing any fuel, while more than 100 oil marketers collected the same amount of money on several occasions. The leaked report also says that officials in the government of President Goodluck Jonathan were among those who benefited from the subsidy fund.€
Many Nigerians were furious when they were told that the fuel subsidy was economically unsustainable €" only to find out the scale of fraud in the operation of the fund. Nigeria is one of the most corrupt countries on earth. It now ranks joint 143rd out of 182 countries for clean government.
Most of the corruption relates to the oil sector. Corruption means that the Nigerian state has not invested in infrastructure, education or the rule of law to a significant extent. The Global Financial Integrity Initiative reported that Nigeria had US$130 billion worth of illicit outflows between 2000 and 2008. Oil has allowed the Nigerian state to function as an economic actor through its ownership of parastatal companies.
Recently former Governor of the oil rich Delta state James Ibori, was sentenced to 13 years in prison for 50 million worth of fraud. In total Governors in almost half of Nigeria's 36 states have faced similar corruption charges. Most have been acquitted.
The annual US$8bn subsidy which Nigeria has in place means that oil prices are lower than in neighbouring countries. Nigerians poured on to the street in January after the government threatened to end the one benefit most Nigerians believe they get from the oil industry.
President Jonathan had defended the subsidy cut, saying that Nigeria must €deregulate and survive economically, or we continue with a subsidy regime that will continue to undermine our economy€. That said, corruption weighs far heavier on the Nigerian economy.
In Nigeria 90% of people still live on less than US$2 a day. Nigeria's National Bureau of Statistics has confirmed that between 2004 and 2010, there had been a 6.2% rise in the number of Nigerians in absolute poverty. 60.9% of Nigeria's population live on less than 0.63 per day.
According to Yemi Kale, head of the NBS Bureau, €Despite the fact that the Nigerian economy is growing, the proportion of Nigerians living in poverty is increasing every year, although it declined between 1985 and 1992, and between 1996 and 2004.€
The fuel sector probe was set up in the wake of angry nationwide protests in January after the government tried to remove a fuel subsidy. While Nigeria is a major oil producer it must import most of its fuel.
According to the BBC, €The 205-page parliamentary report uncovers a long list of alleged wrongdoings involving oil retailers, Nigeria's Oil Management Company and the state Nigeria National Petroleum Corporation.€
The BBC went on to say that, €a total of 15 fuel importers collected more than $300m two years ago without importing any fuel, while more than 100 oil marketers collected the same amount of money on several occasions. The leaked report also says that officials in the government of President Goodluck Jonathan were among those who benefited from the subsidy fund.€
Many Nigerians were furious when they were told that the fuel subsidy was economically unsustainable €" only to find out the scale of fraud in the operation of the fund. Nigeria is one of the most corrupt countries on earth. It now ranks joint 143rd out of 182 countries for clean government.
Most of the corruption relates to the oil sector. Corruption means that the Nigerian state has not invested in infrastructure, education or the rule of law to a significant extent. The Global Financial Integrity Initiative reported that Nigeria had US$130 billion worth of illicit outflows between 2000 and 2008. Oil has allowed the Nigerian state to function as an economic actor through its ownership of parastatal companies.
Recently former Governor of the oil rich Delta state James Ibori, was sentenced to 13 years in prison for 50 million worth of fraud. In total Governors in almost half of Nigeria's 36 states have faced similar corruption charges. Most have been acquitted.
The annual US$8bn subsidy which Nigeria has in place means that oil prices are lower than in neighbouring countries. Nigerians poured on to the street in January after the government threatened to end the one benefit most Nigerians believe they get from the oil industry.
President Jonathan had defended the subsidy cut, saying that Nigeria must €deregulate and survive economically, or we continue with a subsidy regime that will continue to undermine our economy€. That said, corruption weighs far heavier on the Nigerian economy.
In Nigeria 90% of people still live on less than US$2 a day. Nigeria's National Bureau of Statistics has confirmed that between 2004 and 2010, there had been a 6.2% rise in the number of Nigerians in absolute poverty. 60.9% of Nigeria's population live on less than 0.63 per day.
According to Yemi Kale, head of the NBS Bureau, €Despite the fact that the Nigerian economy is growing, the proportion of Nigerians living in poverty is increasing every year, although it declined between 1985 and 1992, and between 1996 and 2004.€
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