Senate confirms N11trn oil subsidy payment, okays N129bn for marketers

Jumoke Adelabu – Abuja

The Senate on Thursday confirmed the payment of N11 trillion as fuel subsidy claims in the last six years. The chairman of its Committee on Petroleum Downstream, Kabir Marafa (APC, Zamfara), made the disclosure while tendering a report. This comes as the upper legislative chamber approved the payment of N129 billion as subsidy arrears for 67 oil marketers.

The approval followed the adoption of the report of the committee on the Promissory Note Programme and Bond Issuance for Oil Marketers Outstanding Claims before adjourning till June 6 for its valedictory session. Marafa noted that the decision had settled the lingering issue of subsidy claims by the marketers.

The lawmakers had also on Tuesday sanctioned the sum of N69 billion as subsidy payment for 19 oil importers. During the presentation, the panel chair observed that there were differences in submissions made by the Federal Ministry of Finance, Petroleum Products Pricing Regulatory Agency (PPPRA) and the marketers.

Nigerian Senate.

The report pointed out that all arrears were based on three inter-related elements – subsidy, forex differentials and bank interests. In their contributions, the legislators held that Nigeria was bleeding paying outstanding subsidy claims, adding that the action would further hurt the economy.

They therefore called for the building of new refineries to put an end to fuel subsidy payment.Specifically, Yusuf Yusuf (APC, Taraba Central) said until the value of the naira was addressed, there would always be fuel subsidy issues.

On his part, Victor Umeh (APGA Anambra Central), wondered what the next line of action was after the sum had been paid.

However, chairman of the Public Accounts Committee, Matthew Urhoghide (PDP, Edo), feared that the incoming Ninth Assembly would be inundated with more of such claims because “the computations were not properly done.”

Deputy Senate President Ike Ekweremadu, who presided over the plenary, claimed that the Nigerian National Petroleum Corporation (NNPC) now charges subsidy claims on the Consolidated Revenue Fund of the Federation, a development he described as unconstitutional.

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