Senate to probe N9.3tn petrol subsidy payments, summons Kyari

Senate to probe N9.3tn petrol subsidy payments, summons Kyari

The Senate on Tuesday announced a plan to investigate the controversies surrounding payment of N9.3tn within 30 months on petrol subsidy.

The probe will be carried out by its ad hoc committee on downstream oil sector.

It therefore summoned the Group Chief Executive Officer of the Nigerian National Petroleum Corporation Limited, Mele Kyari, to brief it on the Federal Government’s under-recoveries.

The Senate said that the ad hoc  Committee on Petroleum (Downstream), should, when constituted, would constantly monitor, scrutinise and approve Midstream and Downstream spending of the NNPCL.

It urged the NNPCL, in conjunction with some IOCs, to form three different consortia and build three refineries to stabilise the nation’s oil market, give value to the naira and stabilise the economy.

The Senate also called for a living wage for workers as a way of cushioning the effects of subsidy removal.

These resolutions were sequel to the consideration of a motion by Senator Ndubueze Chinwuba.

The motion was  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).”

In his lead debate, Ndubueze said the step taken by President  Tinubu on subsidy was commendable.

He submitted that while within 10 years (2006 – 2015), the Federal Government through NNPCL, claimed N170 billion as under-recovery; it expended N843.121 billion on under-recovery between January 2018 and January 2019.

The lawmaker said, “Very worrisome is the expenses made on subsidy/under recovery by NNPCL during the period under review, particularly from January 2021 to June 2023 when N9.3 trillion was claimed to have been spent.

“The available records show 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.”

Many senators frowned at the bogus expenses made during the subsidy regime by NNPCL and supported all the prayers contained in the motion.

The Senate resolved that the committees on Petroleum (Downstream), Petroleum (Upstream) and Finance, when constituted, should investigate subsidy payments and under-recovery regime.

Senate President, Godswill Akpabio, said, “We commend President Tinubu for the decision to remove fuel subsidy. We are excited about the courage displayed by the President.

“It was one decision that had to be taken and we are happy that it was taken during the lifetime of the 10th Senate.

“We are also looking forward to the implementation of the palliatives.”

Senate to probe N9.3tn petrol subsidy payments, summons Kyari