This follows the adoption of a motion, “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)”, sponsored by Senator Ndubueze Patrick Chinwuba (Imo North).
In his submission, Senator Patrick Chinwuba noted there was some foul play by NNPCL during the fuel subsidy regime.
“Observes that while NNPCL within 10 years, 2006 and 2015, claimed about N170bn as under recovery, the same NNPCL within 13 months, January 2018 to January 2019 claimed a whopping sum of N843.121bn as under recovery.
“Concerned that the then Petroleum Product Pricing Regulatory Agency (PPPRA) published in its website, figures that contradict NNPCL’s daily under recovery claims within the same period.
“Also Concerned that the Federal Government appropriated N1.42 trillion and N4.3 trillion for petrol subsidy in 2021 and 2022 respectively while N3.6 trillion was appropriated for petrol subsidy for 6 months ending in June, 2023.
“Worried that the NNPCL arbitrary and unsupervised direct deduction from the country’s crude oil revenue without recourse to any enabling law contravenes Section 89 (1c and 1d) of the 1999 constitution (as amended) and does not speak well of the good intentions of the Federal Government, especially in its fight against corruption”.
Senator Patrick Chinwuba urged the Senate to constitute an Ad-hoc Committee to investigate all controversies surrounding ” subsidy and under recovery regime”, to invite the Group Chief Executive Officer of NNPCL to brief the Senate on its under recovery expenditure, and the Company’s position on subsidy removal of the present administration amongst others.
The Senate, while thanking president Bola Tinubu for taking a bold step to announce the total removal of fuel subsidy, noted that the motion was very timely.
The lawmakers noted if Nigeria could save over N400bn in one month accruing from fuel subsidy removal, then there is obvious need to investigate the regime, stating that as a corrective Senate they must bring to book every corrupt practice during the regime.
They however expressed concern over the utilisation of the monies accruing from fuel subsidy, saying such monies should be used to revive ailing infrastructural projects like Ajakuta steel, refineries and others.
While acknowledging the pains fuel subsidy removal have meted on Nigerians, the distinguished Senators urged President Bola Tinubu to provide palliatives that will cushion its effects.
The motion was however referred to the Standing Committee (when constituted).
