House of Reps summon Ibe Kachikwu, Maikanti Baru over fuel subsidy payment

Cornelia Mascio
Gennaio 18, 2018

The House has also invited the Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mr Maikanti Baru, and the Executive Secretary, Petroleum Products Pricing Regulatory Agency (PPPRA), Mr Abdulkadir Umar.

The reps also adopted a motion by a member Sunday Karimi (Kogi) which asked the Federal Government to make provision for subsidy payment in the 2018 Appropriation Bill, if it wants to continue the payment of petrol subsidy.

The 13 years old 191-page bill (a segment of the entire Bill), seeks to unbundle the Nigerian National Petroleum Corporation, NNPC, provides for the establishment of Federal Ministry of Petroleum Incorporated, Nigerian Petroleum Regulatory Commission, Nigerian Petroleum Assets Management Company and National Petroleum Company and Petroleum Equalisation Fund.

Leading the debate on the motion, Karimi pointed out that between January and December the federal government through the NNPC claimed to have spent over N300 billion on payment of subsidy for petrol.

With the bill is signed into law, two new companies, Nigeria Petroleum Assets Management Company and National Petroleum Company, would be established with certain assets and liabilities of Nigerian National Petroleum Corporation, NNPC, while the National Petroleum Company, for instance, would operate as a full independent commercial entity.

"Under Recovery implies that expected open market price of PMS, which includes cost of importation and distribution of the commodity such as marketers margin, landing costs and freight cost is below the approved retail price".

House of Reps summon Ibe Kachikwu, Maikanti Baru over fuel subsidy payment
House of Reps summon Ibe Kachikwu, Maikanti Baru over fuel subsidy payment

"The 1999 Constitution (as amended) prescribes that no monies shall be withdrawn from the consolidated revenue fund or any other public fund of the federation, except in a manner prescribed by the National Assembly".

In February 2016, State Oil Minister Emmanuel Ibe Kachikwu said NNPC was in talks with the Senate to speed up the process by splitting the PIB into three parts covering governance, taxation and business items such as oil block licensing.

On his part, the Deputy Chief Whip, Pally Iriase called for the full deregulation of the downstream sector to curb the corruption now associated with it and open it up for private investment.

The Senate on Wednesday came down hard on its Committee on Petroleum Resources (Downstream) for turning out a shoddy report on alleged illegal fuel subsidy payment.

They admitted that the cost differential of N26 per litre is being paid by government as subsidy without stating who authorised the payment. Yussuff Lasun, after the report and recommendations of the Ad hoc Committee on Petroleum Industry Bill led by Hon.

"Today, no refinery is working and I believe that something needs to be done, " he added.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE