Mohammed Shosanya
The House of Representatives,Thursday urged the federal government to direct the suspension of all Direct Sales Direct Purchase (DSDP) contracts currently running with the Nigeria National Petroleum Company limited (NNPCL),stressing that it should act by the provisions of the Petroleum Industry Act, PIA ensure that the country is not sub-changed in both production, lifting and sales of crude.
It also said that while the government should outrightly remove subsidies on all petroleum products, it should immediately design measures and palliatives to cushion the effects of the removal for Nigerians, effective from this year 2023 through the provision and procurement of CNG Busses as an alternative Transport System with Cheaper Fuel Consumption.
They said the government should also introduce intermodal, regional and national transport system to ease mass movement of people across the country.
The resolutions followed the adoption of the 11 recommendations by the Ad-hoc Committee that investigated the Petroleum Products Subsidy Regime in Nigeria from 2013 to 2022.
Presenting the report from their investigation 11 months later, Chairman of the Ad-hoc Committee, Hon. Ibrahim Aliyu, advised that the Revenue Mobilisation Allocation and Fiscal Committee should lead a reconciliation meeting between NNPCL, FIRS and Joint Venture Contractors, JVCs and the Commission on the utilization of their crude entitlements.
He also advised on further investigation through a forensic audit by the office of the Auditor General for the Federation be made to ascertain whether the N413billion borrowed from the CBN for subsidy payments was refunded after the passage and assent of the 2015 budget as earlier approved by the President and the report of the Auditor General to be submitted to the House for further legislative action.
Other recommendations as adopted by the House include: “that the Nigerian Midstream Down Stream Petroleum Regulatory Commission should issue stricter and most appropriate regulations as provided in the PIA to ensure that Nigerians are not short- changed through profiteering; that the Nigeria Customs Service and Weight and Measures Department of the Federal Ministry of Industry, Trade and Investment be equipped to ascertain the actual daily crude oil lifting from the country for proper checks and balances; that the Committee recommends that the NEITI Act, 2007 be amended by the National Assembly to be in tune with global best practices.
“With the total deregulation of the sector, all the agencies involved in crude lifting/security should have a representative with the Nigeria Navy as a lead agency to physically asses and document daily crude production and lifting, that the Committee also recommends that the Federal Government should as a matter of urgency, liaise with the National Assembly to fashion out critical areas of economic development, which the additional revenue from the proposed subsidy removal will be appropriately utilized, and that given the constrain of the Committee and overlapping events, the National Assembly (HR) Standing or Ad-hoc Committees be saddled with such responsibility to conduct full-scale investigation on the defaulting oil companies and MDAs that have not met the expectations of the Committee to ascertain their level of involvement or otherwise and further protect the commonwealth of the country.”
Besides, the lawmakers considered and passed the report of a Bill seeking for an Act to Repeal the Defence Industries Corporation of Nigeria Act, 2004 and Enact the Defence Industries Corporation of Nigeria Act, 2023 to Operate, Maintain and Control Subsidiaries and Ordnance Factories for the Manufacture, Storage and Disposal of Ordinance and Ancillary Stores and Materiel.
