The Federal Executive Council (FEC), meeting, presided over Wednesday by Acting President, Yemi Osinbajo, approved N17 billion for the installation of technology monitoring schemes and structures under Petroleum Equalisation Fund (PEF).
The device. According to government, is for the automated fuel system management and censor network. Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, said it will help eliminate fuel subsidy scam and put to an end to the conflicting figures about the nation’s actual daily fuel consumption.
The project which is for three years is expected to start yielding results next year when the the 2020 budget will be prepared, Kachikwu explained.
He said, “We have all struggled with this subsidy payment narrative and of how much product is consumed in Nigeria, volumes of products moved out illegally and the whole impact on FAAC accounts.
”The essence of what PEF is doing is to enable us track refined petroleum product movement from the point of LC (letter of credit) opening from the vessels that come into Nigeria, until the point where they are discharged into tanks in Nigeria, and from the tanks into trucks. And to monitor the trucks till they deliver the products into the storage tanks at the filling stations and and sold.”
The minister said the project will produce a 100 percent holistic monitoring of products, noting that for the first time Nigeria will be in a position to tell exactly how much petroleum products is consumed in the country.
He said the process will enable the tracking of every truck with a licensed driver, operating under a transport company, “So if a truck misses the company takes responsibility,” Kachikwu stated.
The project which he said will be hosted by the PEF, will however be a collaborative one that will involve the Nigeria National Petroleum Corporation (NNPC), the Department of Petroleum Resources (DPR) and the Petroleum Products Pricing Regulatory Agency (PPPRA).