By Henry Umoru

ABUJA— MOVES by the Senate to impose N5 charges on petroleum products in the country as a way of raising revenue for maintenance of roads through its Committee on Works, yesterday, suffered a major setback as senators angrily kicked against the proposal.

Senate chamber

In his presentation of the report on National Road Funds (Establishment, etc) Bill, 2017, yesterday, Chairman, Senate Committee on Works, Senator Kabir Gaya (APC, Kano South), however, argued that the planned N5 levy on every litre of petroleum products would not in anyway lead to increase in the price of fuel.

According to him, the charges will be deducted from source within the existing petroleum price template approved by the Petroleum Products Pricing and Regulatory Agency , PPPRA.

Trouble for the bill had earlier started last Friday when it was widely reported that the N5 levy was targeted at increasing fuel price from N145 per litre to N150.

But many of the senators were not convinced with Gaya’s submission, insisting that the proposal would be injurious to many Nigerians, economically, and vehemently kicked against the bill being passed for third reading by the Senate.

First to kick against the bill was Chairman, Senate Committee on Petroleum Downstream, Senator Kabiru Marafa (APC Zamfara Central), who declared that the proposal would further impoverish Nigerians.

He said sourcing revenues for road maintenance in the country should be limited to road sector itself and not extended to other areas.

He said: “This will bring untold hardship to the people of Nigeria. We have already addressed something like this in the Petroleum Industry Governance Bill, PIGB. I oppose this recommendation very vehemently.”

Supporting Marafa’s position, Senate Minority Leader, Senator Godswill Akpabio (PDP Akwa Ibom North West), said he had great reservations about the proposal but urged the Senate to be very cautious in handling the bill.

In his contribution, Deputy Senate Leader, Bala Ibn Na’Allah, APC, Kebbi South, said the Senate never planned for fuel price increase as widely reported last week.

He said: “We need to suspend our procedure and explain to Nigerians. If we do not do this, there will be trouble, Nigerians will think we want to increase fuel price.”

Senate steps down Road Funds Bill

Following the tongue-lashing the bill got from senators and to give it soft landing, the sponsor of the Bill had to hurriedly move for its withdrawal to save it from total rejection.

Consequently, Deputy Senate President, Ike Ekweremadu, who presided over the session, then put the question to a voice vote.

Almost all the lawmakers yelled ‘aye’, including members of the Committee on Works, who signed the initial report, which recommended the N5 charge.

 NNPC still operating subsidy regime

Meanwhile, the Senate yesterday raised alarm over the continued operation of fuel subsidy regime, saying the Nigerian National Petroleum Corporation, NNPC, was still operating subsidy regime in the country, contrary to Federal Government’s claims.

Chairman, Senate Committee on Petroleum Resources (Downstream), Senator Marafa, who made the claims on the floor of the Senate, yesterday, said contrary to claims made by the Federal Government that the fuel subsidy regime had been abolished, NNPC was still making secret payments.

Marafa, who claimed that the situation had crippled the downstream sector of the petroleum industry, where NNPC had become the sole importer of products, revealed that his committee was currently investigating the illegal payment of subsidy by management of NNPC.