Senate bows to pressure, steps down Road Funds Bill

….raises alarm over continuous operation of fuel subsidy regime by NNPC

The Senate on Thursday bowed to pressure as it stood down the National Road Funds Bill, which has been generating controversy across the country over the past few days.

The Senate had initially through its Committee on Works proposed N5 charges on Petroleum products as a way of raising revenue for maintenance of roads network in the country which are in poor state.

The sponsor of the National Road Funds Bill containing the proposal, Senator Kabiru Gaya, hurriedly moved for its withdrawal to save it from total rejection.

The Bill had attracted heavy criticisms after it was widely reported in the media both local and international essentially that the proposal on N5 charges on every litre of petroleum products would ultimately lead to increase in the fuel price from N145 per litre to N150.

Senator Gaya while presenting the report of the Senate Committee on Works on the proposed charges said the proposed N5 levy on every litre of petroleum products would not in any way lead to increase in the price of fuel.

He said the charges will be deducted from source within the existing petroleum price template approved by the Petroleum Products Pricing and Regulatory Agency (PPPRA) and be used by importers /marketers.

Said he: “There was media report last week that we are increasing fuel by N5, which is not true. We intend to remove the N5 from the current N145 per litre. If this bill is passed, the government will realise about N94 billion per annum into the National Road Funds for road maintenance across the country.”

During a voice vote conducted by the Deputy Senate President, Ike Ekweremadu who presided over the session, Senators who agreed with the position of Senator Gaya chorused ‘aye’, including members of the committee on Works to put the process of passage in abeyance.

However, some Senators who did not agree with the submission by Gaya argued that the proposal would be injurious to Nigerians economically and kicked against the idea of the bill scaling third reading.

Senator Kabiru Marafa (APC Zamfara Central) and chairman, Senate Committee on Petroleum (Downstream) who expressed opposition to the Bill contended that the Bill if passed would further impoverish Nigerians.

He said sourcing revenues for road maintenance in the country should be limited to road sector itself and not extended to other areas as the proposed N5 charge on petroleum products will lead to increase in the price of fuel and invariably worsen the hardship being faced by Nigerians.

He said: “My comments are on the method of funding. The claims that the N5 charge has already been captured are not correct. Taking another N5 from refined products will add to the suffering of the people.

“This will bring untold hardship to the people of Nigeria. We have already addressed something like this in the Petroleum Industry Governance Bill (PIGB). I oppose this recommendation very vehemently.”

In the same vein, the Senate Minority Leader, Senator Godswill Akpabio (PDP Akwa Ibom North West) expressed reservation on the Bill as he pleaded for caution on the part of the Senate on process of passage.

“I want to align myself with the submissions of other speakers. I have reservations about the bill. I do not want the chamber to just pass a law and it will not be effective. I had an experience with the Police Funds when I was a governor.

Throughout my time as governor, I did not get any fund,” he said.
Deputy Senate Leader, Bala Ibn Na’Allah in his remarks said Senate never planned to increase fuel price as widely reported, thus corroborating the position of the Chairman Committee on Works.

He said, “We need to suspend our procedure and explain to Nigerians. If we do not do this, there will be trouble. Nigeria will think that we want to increase fuel price.

“Senate has no intention of increasing the price of fuel. There is no ambiguity about it. What we are trying to do is to find other sources of funding road infrastructure. We do not want to impose hardship on the people of Nigeria. We want to ensure that those who voted for us have comfort in their lives.”

Meanwhile, the upper chamber has raised the alarm over the continuous operation of fuel subsidy regime. It said contrary to claims by the Federal Government, the Nigerian National Petroleum Corporation (NNPC) is still operating subsidy regime in the country.

Chairman, Senate committee on Petroleum Resources (Downstream), Senator Marafa, who made the claims on the floor of the Senate on Thursday, said contrary to claims made by the Federal Government that the fuel subsidy regime had been abolished, NNPC was still making secret payments.

Marafa claimed that the situation has crippled the downstream sector of the petroleum industry, where NNPC has become the sole importer of products.
The lawmaker revealed that his committee was currently investigating the illegal payment of subsidy claim by management of the NNPC.

Marafa said: “Even the price of N145 is not realistic. The NNPC is still operating the subsidy regime. NNPC is now the only body importing petroleum products into the country. You cannot import petroleum products into the country right now with the current trend. We are investigating this subsidy payment by the NNPC.”