The need to look into the books of subsidy payments was first raised at the National Assembly by Senator  Bukola Saraki. The senator last year initiated a motion in the Senate, seeking an investigation into the N240 billion budgeted in the 2011 Appropriate Act for fuel subsidy. 

Saraki, Chairman of the Senate Committee on Environment and Ecology, representing Kwara Central Senatorial District, acted pursuant to Sections 88 and 89 of the 1999 constitution, which empowers the National Assembly to probe any sector of the country's economy, to ensure that corruption was exposed and waste of public funds checked.

In the 2011 budget, N240billion was to subsidise petroleum products. It was feared that actual expenditure could be up to N1.2 trillion by the end of year, owing to corruption and other sharp practices.

 Saraki's motion stated that N771billion is 700 per cent above the budgeted sum, contending that if the current rate of expenditure was allowed to continue, N1.2 trillion would have been spent by one agency of government by December, this year and exceed the total capital budget of N1.1 trillion for the 2011 fiscal year. 

Senator Saraki suggested the setting up of a committee to investigate how the funds were sourced. He was worried that the first three months of the year, both NNPC and Independent Marketers did not exceed N62billion monthly, but wondered why within the last three months, figures had ranged between N159 billon and N186 billion. 

According to him, of the N20 billion monthly allocation, N11.2 billion was voted for domestic fuel subsidy (NNPC) and N8.8bn for domestic fuel subsidy (market). 

Saraki observed that although N20 billion was set aside for subsidy on a monthly basis in the 2011 Appropriation Act, a total sum of N165 billion was expended in August, 2011 out of which NNPC got N88 billion and independent marketers N77.7 billion.

He also observed that although N240 billion was budgeted for the entire year, N931 billion had been spent as at August ending.

"With this trend, by year-end, we will have a fuel subsidy bill of over N1.2 trillion as against the N240 billion budgeted for the programme in the Appropriation Act," Saraki said, adding "this expenditure is treated as a first line charge, and by implication, all other expenditures, including capital expenditures and even distribution to the states and local government, which we represent, is secondary." 

He noted that "the processes, audit, scrutiny and value for money in the entire subsidy management system lack transparency and control as the costs have continued to maintain an upward swing."

 Saraki said: "If nothing is done to address this situation urgently, we risk the non-implementation of the 2011 budget and the hopes of Nigerians that much can be achieved this year will be a mirage."

There have been suggestions in political and business circles that Saraki's reported invitation by the Special Fraud Unit (SFU) over some past business dealings may have been the result of his role in the subsidy crisis. This could not be confirmed last night.