By Joy Odor
The Senate has resolved to probe oil subsidy and under recovery regime operated by federal government till May 29 2023 when subsidy was removed as it glared at N9.3 trillion expended on the subsidy regime from January 2021 to June 2023.
Senate’s resolutions were sequel to a motion sponsored by Senator Chiwuba Ndubueze (APC Imo North) titled: “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).
Ndubueze in his motion submitted that while within 10 years (2006 – 2015), federal government through NNPCL, claimed N170 billion as under recovery, it expended whopping N843.121 billion on under recovery between January 2018 and January 2019.
The lmo North Lawmaker lamented that it is worrisome of the expenses made on subsidy/ under recovery by NNPCL during the period under review, particularly from January 2021 to June 2023.
“The money as shown by available records, shows that in 2021, N1.42 trillion was expended, in 2022 N4.3 trillion and in the first six months of 2023, N3.6 trillion totalling N9.3 trillion” He laments.
Ndubueze informed that the step taken by President Bola Tinubu on subsidy withdrawal in May was commendable, pointing out that the regime need to be investigated.
In their contributions to the debate on the motion, the Senators bemoans at the bogus expenses made on the subsidy regime by NNPCL and supported all the prayers sought for in the motion.
The Senate after resolved that its standing committees on Petroleum (Downstream), Petroleum (Upstream) and Finance should when constituted carry out holistic investigation on all controversies surrounding subsidy and under recovery regime.
It also urged the NNPCL in conjunction with some major international oil companies ( IOCs) in Nigeria to form three different consortium and build three refineries for stabilization of oil market and the Nation’s economy generally.
The Senate also seeks for living wage for workers as a way of cushioning the effects of subsidy removal and as well, seeks for establishment of three functional refineries for local production and distribution of refined oil with a view to bringing down the pump price from N540 per litre to between N300 to N350 per litre.
