- Approves N129.048bn for payment of 67 oil marketers
- Holds valedictory session on June 6
- Asks FG not to downgrade Enugu Airport
- Leader accuses wealthy Nigerians of buying court judgments
The Senate Thursday disclosed that the federal government spent not less than N11 trillion on fuel subsidy in the last six years. The Senate also approved the payment of N129,048,358,444.11 as final subsidy arrears payment to 67 oil marketing companies. It also yesterday adjourned sitting till June 6 when the National Assembly is billed to hold its valedictory session.
The Senate’s approval of oil subsidy claims was sequel to the presentation of the report of the Senator Kabir Marafa-led 20-man Senate Committee on Downstream Petroleum Sector on Promissory Note Programme and Bond Issuance to settle inherited local debts and contractual obligations to petroleum marketers by the chairman.
Marafa, in his 11-page presentation, said Nigeria had since 2013 spent over N11 trillion to settle outstanding fuel subsidy claims.
However, he said the approval of the latest payment to 67 oil marketers ended the issue of subsidy arrears claims by oil marketing companies. Marafa observed that there were differences in submissions made by the Federal Ministry of Finance, Petroleum Products Pricing Regulatory Agency (PPPRA) and oil marketers.
He said all the subsidy arrears claims were based on three inter-related elements: subsidy, forex differentials and bank interests on unpaid claims.
According to him, “That the recent request computation is based on one of the already identified elements (forex differential). “That due to scarcity of forex within the period, oil marketing companies were allowed to source forex outside CBN rate to enable them to meet the country’s petroleum products demand.
“That NNPC Retail get their petroleum product allocation directly from PPPMC at already subsidised rate and so does not require forex to transact its business.” Some of the benefitting oil marketers and the amount approved for them include: Total Nigeria PLC N13.7 billion, Northwest Petroleum N11.4 billion, Masters Energy N10 billion, MRS Oil PLC N8.8 billion and Sahara Energy N8.4 billion.
Others are: MRS Oil & Gas Limited; N6.3 billion, NIPCo Plc, N4.2 billion; Forte Oil N3.9 billion, DEEJONES Petroleum & Gas, N4.1 billion; Emadeb, N4 billion; Sulphur Streams Ltd N147.52 million; Eterna Plc, N704,89 million; Ceoti Limited, N88.20 million; and ASB Investment Company, N38.85 million; among others.
Contributing, some senators said Nigeria was bleeding paying outstanding subsidy claims and that this would hurt the nation’s economy. They, therefore, called for the building of new refineries to end fuel subsidy payment.
On his part, Chairman of Senate, Public Accounts Committee, Senator Matthew Urhoghide, expressed concern that more subsidy requests would come in the incoming ninth Assembly because “the computations were not properly done.”
Deputy Senate President, Senator Ike Ekweremadu, who presided over the session, lamented that the Nigerian National Petroleum Corporation (NNPC) now charge subsidy claims on the Consolidated Revenue Fund of the Federation, a development he described as unconstitutional.
He said: “I am also happy to note that we are coming to a closure on the issue of this outstanding payment on subsidy claims. And then begin to think of the best way to deal with the subsidy issues.
“And the frightening aspect of it is that the NNPC now charges subsidy on the Consolidated Revenue Fund of the Federation. What they do is that the issue of subsidy is now in the first-line charge on our oil revenue, which is extremely dangerous because that is completely unknown to our constitution.
“But the implication, therefore, is that those expenditures are never appropriated. So, it is a possible area of conflict between the executive and the parliament. “I do hope that the next assembly will be able to sit down with the executive in order to address this issue without creating unnecessary tension. And NNPC needs to also caution themselves in that respect so that they don’t encroach on the appropriation responsibilities of the National Assembly.”
Meanwhile, the eighth Senate, which was inaugurated on June 9, 2015, will hold its valedictory session on June 6.
Ekweremadu made this known while responding to the motion for adjournment of plenary moved by Lawan.
Source: THISDAY
