*Resolves to probe fuel subsidy from 2015 to May 29, 2023
*Frowns at N9.3trn spent on subsidy between 2021 and 2023 under his watch
*Seeks living wage for workers, 3 functional refineries for local production to reduce fuel price
*That its C’ttee on Petroleum (down/upstream) should carry out holistic probe of subsidy regime
By Okechukwu Jombo
The Senate Tuesday resolved to probe the fuel subsidy under-recovery regime operated by the federal government from 2015 to May 29, 2023 when the subsidy was eventually removed.
It specifically frowned at N9.3 trillion expended on the subsidy regime by the federal government from January 2021 to June 2023.
It also seeks for living wage for workers as a way of cushioning the effects of subsidy removal and as well, seeks for establishment of three functional refineries for local production and distribution of refined oil with a view to bringing down the pump price from N540 per litre to between N300 to N350 per litre.
Senate’s resolutions to this effect were sequel to a motion sponsored by Senator Chiwuba Ndubueze (APC) Imo North).
Ndubueze in the motion titled: “Need to investigate the controversial Huge Expenditure on Premium Motor Spirit (PMS) under the subsidy/under recovery regime by the Nigerian National Petroleum Company Limited (NNPCL)”, said the step taken by President Bola Tinubu on subsidy withdrawal in May was commendable but the regime needs to be investigated.
He specifically submitted that while within 10 years (2006 – 2015), the federal government through NNPCL, claimed N170 billion as under recovery, it spent a whopping N843.121 billion on under recovery between January 2018 and January 2019.
“Very worrisome of the expenses made on subsidy/under recovery by NNPCL during the period under review particularly from January 2021 to June 2023 was N9.3 trillion claimed to have been spent.
“The money as shown by available records reveals that in 2021, N1.42 trillion was expended, in 2022, N4.3 trillion and in the first six months of 2023, N3.6 trillion, totaling N9.3 trillion”, he said.
Many of the Senators who contributed to debate on the motion, frowned at bogus expenses made on the subsidy regime by NNPCL and supported all the prayers sought for in the motion.
The Senate accordingly resolved that its standing committees on Petroleum (Downstream), Petroleum (Upstream) and Finance should, when constituted, carry out holistic investigation on all controversies surrounding subsidy and under recovery regime.
It also urged the NNPCL in conjunction with some major international oil companies (IOCs) in Nigeria to form three different consortiums and build three refineries for stabilization of the oil market and the Nation’s economy generally.
