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Oil theft: Falana seeks details on N17bn tech monitoring schemes acquired by PEF

Oil theft: Falana seeks details on N17bn tech monitoring schemes acquired by PEF
October 30
21:44 2022

Femi Falana, human rights lawyer, has asked the federal government to provide information on the installation of technology monitoring schemes and structure by petroleum equalisation fund (PEF) approved in 2018.

Falana disclosed this in a letter dated October 28, 2022, and addressed to the executive secretary and chief executive officer, PEF.

According to the letter, in a meeting held on August 8, 2018, “the federal executive council (FEC) approved the installation of technology monitoring schemes and structures under the petroleum equalisation fund (PEF) for N17 billion for monitoring and tracking refined petroleum products in Nigeria”.

Ibe Kachikwu, former minister of state for petroleum resources, had disclosed the decision to the public.


The minister had said the deployment of the automated fuel system management and censor network would ensure 100 percent tracking and monitoring of petroleum products.

“The narrative is that we have all struggled with this whole subsidy payment, how much is consumed in Nigeria, volumes of products moved out illegally and the whole impact on the Federation Account Allocation Committee (FAAC),” the letter quoted Kachikwu as saying.

“The essence of what PEF is doing is that this will enable us to track refined petroleum products movement from the point of LC (letter of credit) opening from the vessels that come into Nigeria, up until the point where they are discharged into tanks in Nigeria.


“It will monitor from the tanks to trucks in Nigeria, monitor the trucks till they deliver the products into the storage tanks for the filling stations and they are discharged and sold.”

Reacting to this, Falana demanded information on the installation of the technology monitoring schemes and structures acquired by PEF for the sum of N17 billion approved by the federal executive council on August 8, 2018. 

“This request is made pursuant to the provisions of the Freedom of Information Act 2011, you are required to accede to our request within 7 days of the receipt of this letter,” he added.

The lawyer further warned that if the company fails or refuses to furnish them with the requested information before the deadline of seven days, “there shall be no hesitation to pray the federal high court to compel you to accede to our request”.


Meanwhile, Checks by TheCable show that the federal government scrapped three oil sector agencies as required under the new petroleum law.

Under the Petroleum Industry Act, enacted in August, the agencies scrapped include; Department of Petroleum Resources (DPR), the Petroleum Products Pricing Regulatory Agency (PPPRA), and the Petroleum Equalisation Fund (PEF).

They were replaced by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NPRA, and the Nigerian Upstream Regulatory Commission, NURC.



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