By Olugbenga Salami
Senate has berated the federal government for the payment of over N11trillion to petroleum marketers as subsidy in the last six years without the approval of the National Assembly, warning that such action if not stopped could negatively affect the nation’s economy.
This is even as the upper legislative chamber approved the payment of additional N129 billion subsidy claims to another set of 67 petroleum marketers having approved payment of N68.9 billion to 20 marketers on Tuesday.
The Senate’s decisions followed the considering the report of its Committee on Petroleum Resources (Downstream), on the Promissory Note Programme and Board Issuance for Oil Marketers Outstanding Claims to settle inherited local Debts and contractual obligations to marketers.
Chairman of the committee, Senator Kabiru Marafa (APC, Zamfara Central), while presenting the report, revealed that Nigeria spent over N11 trillion to pay outstanding subsidy claims in the last six years.
The report read in part: “That due to scarcity of Forex within the period, Oil Marketing Companies were allowed to source Forex outside CBN rate to enable them meet the country’s petroleum products demand.
“That NNPC Retail gets their petroleum product allocation directly from PPPMC at already subsidized rate and so does not require forex to transact its business.”
Some of the 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 Pls N4.2 billion, Forte Oil N3.9 billion, DEEJONES Petroleum & Gas N4.1 billion, Emadeb N4 billion among others.
The senators, before approving the payment, berated the federal government for paying subsidy to oil marketers over the years without the Senate approval.
Reacting to the report, Senator Barnabas Gemade (SDP, Benue North-East), wondered why the federal government and the anti graft agencies had failed to convict any of the oil marketers who were indicted in the illegal subsidy claims.
Senator Gemade noted with regret that the government had not done enough in bringing the owners of the affected 50 oil firms to justice many years after their prosecution.
“What has happened to those who defrauded the nation? I believe that the 9th Senate will do justice to know what has happened to this money,” he said.
Senator Gemade also reminded the President Muhammadu Buhari-led government of its pledge subsidy payment when it came into in 2015.
He said: “The government should stand by its words. If the government fails to end the subsidy regime, it will kill the Nigerian economy and all of will be accused to it.”
Senators Bassey Akpan (PDP, Akwa Ibom), Victor Umeh (APGA, Anambra Central) and Mathew Urhoghide (PDP, Edo South), among other contributors, condemned the subsidy payment.
According to Senator Umeh: “If we continue to hope that one day this subsidy will end, we are deceiving ourselves, what would Nigerians face after this payment of arrears?”
“People in government have refused to face the problem. Everyone is depending on oil revenue and yet no functional refineries have been set in place
“The government should be able to plan to build five refineries, why can’t we use the money we get from sale of our crude to build refineries?
“The government should give us a programme to enable us have four functional refineries in five years.
“Exchange rates are not the problem, but our inability to do what others are doing is the main issue”, he stressed.
Also, Senator Urhoghide said, “Government should be serious in their policies and not be directionless in executing these policies.”
In his remarks, the Deputy Senate President, Ike Ekweremadu, who presided over the plenary, said: “I hope that the next Assembly will be able to sit with the Executive to address this issue and resolve it without creating unnecessary tension.
“The NNPC needs to also caution itself so that they do not encroach on the appropriation responsibility of the National Assembly.
“We need to do something about provisions of refineries in our country – it is not rocket science. Even if it does not resolve the issue of subsidy, we would have gone a long way in addressing it”.
The breakdown showed that N10.8 billion was approved as subsidy claim to Tanzila Petroleum Company, while another N58.1 billion was Okayed for 19 oil marketing companies.
