2022 Appropriation Act: NASS projected Petrol subsidy to over N4trn – Gbajabiamila

By Tom Okpe

Speaker of the House of Representatives, Rep Femi Gbajabiamila has informed that the National Assembly (NASS) projected subsidy for Premium Motor Spirit (PMS), otherwise known as petrol, to over N4 trillion in the year 2022 Repeal and Re-enactment Appropriation Act.

Gbajabiamila in his remarks, while declaring open, investigative hearing of ad-hoc committee of the House of Representatives, on Tuesday, at NASS complex, Abuja on volume of fuel, consumed daily in the country, said: “The National Assembly in the Repeal and Re-enactment of the Year 2022 Appropriation Act has projected the cost of subsidy for Premium Motor Spirit (PMS) to be over 4 trillion naira.”

Recall that the speaker at plenary on Thursday, 27th January 2022, at plenary considered a Motion titled ‘Need to Ascertain the Actual Daily Consumption of Premium Motor Spirit (PMS) in Nigeria.’

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The House however, constituted and mandated the Ad-hoc Committee on the Volume of Fuel Consumed Daily in the Country, “to engage key operators in the sector, so as to leverage on your expertise and experience in the industry and come up with a solution or template required for effective planning, supply and distribution of the premium motor spirit (PMS) in Nigeria.

“Also, to investigate and ascertain actual daily consumption of PMS in Nigeria and report back within eight (8) weeks for further legislative action.

“That the Committee should not restrict its findings to the Nigeria National Petroleum Corporation, (NNPC) records alone, but liaise with experts in the industry, transport workers and all other stakeholders to determine an independent finding for the benefit of Nigerians.”

The House of Representatives, in furtherance to the combined provisions of Section 88 and 89 of the 1999 Constitution of the Federal Republic of Nigeria, as Amended, has the duty to inquire into the conduct of affairs of any person, authority, ministry or government department charged, with the duty of, or responsibility for executing or administering laws enacted by the National Assembly.

It is in the light of the above, that the attention of the House was drawn to: “a lingering incidences of fuel scarcity causing significant loss of man-hour and untold hardship suffered by Nigerians.

“Controversies and concerns generated over huge sums of money being paid as oil subsidies and; inaccuracy of data required for effective planning, supply and distribution of the premium motor spirit, petrol.”

Only last week, the News was awash with the trading of blames between the NMDPRA and IPMAN over bridging the gap as a result of rising cost of IPMAN’s operations, reportedly to the tune of over 70 billion naira in the interim, to address lingering fuel scarcity.

In his contribution, Abdulkadir Sa’ad Abdullahi, Chairman of the Committee reiterated the re-occurrence incidences of fuel scarcity, lamenting controversies and concerns generated over huge sums of money paid as oil subsidies and the inaccuracy of data required for effective planning, supply and distribution of the product.

He said: “The exponential rise in the volume of daily consumption of fuel in the Country as reported by Authorities and Agencies of Government, without corresponding growth in population or other indices, is alarming and devoid of logic or science.

“Prior to the regime of NNPC becoming the sole importer of PMS, the daily consumption was reported to be hovering from 35-40 million litres per day, which was an estimation arrived at or inferred from the volume of importation which is not necessarily true.

“It is our understanding that the NNPC through its Agents being the sole importer of the PMS in the country simply utilize domestic quota of crude oil meant for our local refineries as exchange for the PMS that is imported through a programme referred to as Direct Supply Direct Purchase, (DSDP) and the question that readily comes to mind is, if we are getting value for the Crude offered in exchange for the PMS we receive.”

He buttressed that the committee could ascertain the daily consumption of PMS which can best be confirmed, what is dispensed at the fuelling stations daily adding: “Unfortunately, there are no technology deployed by regulatory authorities to monitor the volume dispensed at various fuelling stations all over the nations.

“Following our interaction with State Actors such as the NNPC, PPMC, NMDPRA and submissions received so far, we are interrogating the entire value chain by paying specific attention to the family tree, with the hope of establishing the volume of PMS supplied at the point of import, storage capacity of Depots and Tank Farms to ascertain if the volume claimed to be imported does not exceed our national storage Capacity, truck out records of sales among others.”

Abdullahi however, assured that the hearing is not a witch hunt and every information provided to the Committee will be treated responsibly.