*NLC denies reaching pact with FG

BY HENRY UMORU, INALEGWU SHAIBU & SIMON EBEGBULEM
ABUJA—The proposed removal of fuel subsidy by President Goodluck Jonathan has divided the Senate. The sharp division occurred yesterday on the floor of the Senate even as they all resolved to probe the Nigerian National Petroleum Corporation, NNPC and the Ministry of Finance for allegedly overshooting oil subsidy funds from N240 billion appropriated in the 2011 budget by the National Assembly to N1.2 trillion

Meanwhile, the Nigeria Labour Congress, NLC, President, Mr Abdulwaheed Omar, denied insinuation that labour had reached an agreement with government on the removal of fuel subsidy, insisting that the move would further impoverish Nigerians adding that the Federal Government was on its own

The decision to probe the management of the subsidy which the senate described as scandalous was sequel to the adoption of a motion moved by Senator Abubakar Saraki, PDP, Kwara and 14 others.

But while the Senators were unanimous on the probe, the proposed removal of fuel subsidy by President Goodluck Jonathan has pitched the senators against one another.

Senators from the South-East and South-South are backing the President’s decision on the removal as they maintained that subsidy has not impacted on the people from the region.

But other senators argued that the removal will compound poverty in the country as they also pointed out that the problem lies with the management of the funds.

Mark blames oil cartel

But the Senate President, David Mark blamed the controversies surrounding fuel subsidy on oil cartels in the petroleum industry and vowed that the Senate will uncover those that short changed Nigerians in the process.

“My belief is that there is a cartel within the petroleum industry and whatever they do is just exclusive to them. Ninety per cent of people outside do not know. We must find out how much is spent on subsidy, who are the beneficiaries? Has subsidy benefitted us? These are salient points and we cannot run away from them.”

Senator Saraki while moving the motion called for Senate investigation into the management of subsidy, contending that the mismanagement of subsidy in 2011 budget will frustrate funding for 2012 appropriation.

He said: “In furtherance to the implementation of the fuel subsidy in 2011 appropriation, the sum of N240 billion (N20 billion monthly) is budgeted. Of the N20 billion monthly allocated, N11.2billion was allocated for domestic fuel subsidy (NNPC) and N8.8 billion for domestic subsidy (market) as stated in the Appropriation Act 2011.

“Although, N20 billion was set aside for subsidy on a monthly basis in the Appropriation Act 2011, in August 2011, the total figure expended was N165bn of which the NNPC was N88 billion and Independent Marketers was N77.7 billion.

“In the first three months of the year, both the NNPC and the Independent Marketers did not exceed N62 billion monthly but within the last three months, figures have ranged between N150 billion and N186 billion.

“With this trend, by the year-end, we will have a fuel subsidy bill of over N1.2 trillion as against the N240 billion budgeted in the Appropriation Act. The implementation of 2011 Appropriation Act will surely be in troubled waters if a variation of N1.2 trillion arises as a result of the level of expenditure incurred on fuel subsidy so far.”

Senators divided

Senators while contributing to the motion harped on the need for a thorough investigation of the management of the subsidy, stressing that those who denied Nigerians the benefit of subsidy must be identified and punished.

Senator Heineken Lokpobiri in his support for the motion questioned the rationale for retaining subsidy when it is to the detriment of the people.

He argued: “In my opinion, subsidy should go. The question we need to ask is whether subsidy is alleviating the price of petroleum products, the issue is that subsidy is not achieving the purpose of being there. The administration has realized that we cannot continue because this subsidy does not benefit anybody.”

Senate Leader, Victor Ndoma-Egba was also in support of the probe and the need for government to remove fuel subsidy.

Ndoma-Egba said: “It is my belief that this argument about subsidy will be endless because subsidy is a mirage that benefits few Nigerians. We must identify the beneficiaries of this subsidy. I have not benefitted from subsidy, my people have not benefitted.”

But Senator Kabiru Gaya, ANPP, Kano while supporting the motion for the probe said it was unconstitutional for monies to be spent without approval from the National Assembly.

He however maintained that government should not remove subsidy, noting that diesel was deregulated but it has made diesel to be scarce in the market.

NLC denies reaching pact with FG on subsidy

Meanwhile NLC president, Omar who spoke when he paid a courtesy visit to the Benin monarch, Oba Erediauwa, said plans by the Federal Government to remove fuel subsidy was an ill wind that will blow the nation no good. He appealed to the monarch to use his position to prevail on the Federal Government to have a rethink.

Omar, who led NLC leaders to the palace, said they came to solicit the blessings of the Oba before commencing their National Administrative Council meeting in Benin City, where it intends to tackle government’s plan to remove fuel subsidy.

According to him, “one of the major reasons we are here is because we need your blessings for the NLC leadership, the workers and the entire nation. We need your blessing because you are one of the few organizations in the country that can talk anywhere. This is crucial time in Nigeria and Nigerians need people like you for guidance.

“The issue today is government plan to remove the subsidy on petrol. This is one issue we believe the government is on its own and the Nigerian people are on the other side. This is an unpopular decision of government.

“We are concerned that Nigerians are once again going to be plunged into a serious financial and economic problem that we don’t think they have the capacity to carry. We believe in the unity and progress of this country. Government must do the right thing rather than punishing Nigerians the more,” he said.

On the insinuation that labour had reached an accord with government on the subsidy issue, he said, “we have not reached any deal with Federal Government. It is not our own version of labour. As you can see, it is one of the things we are going to discuss in our meeting. NLC has its position on the issue of removal of subsidy, it is clearly documented, nobody can take any action outside this body unless the organs of the congress itself. We have not even met with government on the issue.”