....want investigation of N413bn payments borrowed from CBN

By Levinus Nwabughiogu-Abuja 

Following the removal of oil subsidy, the  House of Representatives on Thursday urged the Federal Government to immediately suspend all Direct Sales Direct Purchase (DSDP) contracts.

The House also asked the Nigerian National Petrolatum Company Limited (NNPCL) to ensure that production, lifting and sales of crude oil was done in strict compliance with the provisions of the Petroleum Industry Act (PIA).

The House also demanded palliatives and measures like an alternative transport system with cheaper fuel consumption to cushion the effects of the development on Nigerians.

The call came on the heels of the adoption of the 11 recommendations by the Ad-hoc Committee that investigated the Petroleum Products Subsidy Regime in Nigeria from 2013 to 2022 set up 11 months ago

Presenting the report, the Chairman of the Ad-hoc Committee, Hon. Ibrahim Aliyu advocated a reconciliation meeting that will involve the Revenue Mobilisation Allocation Commission,  NNPCL, FIRS and Joint Venture Contractors, JVCs and the Commission on the utilization of their crude entitlements.

He further called for investigation through a forensic audit by the office of the Auditor General of the Federation be made to ascertain whether the N413billion borrowed from the CBN for subsidy payments was refunded after the passage and assent of the 2015 budget as earlier approved by the President and the report of the Auditor General to be submitted to the House for further legislative action.

Other recommendations of the committee were “that the Nigerian Midstream Down Stream Petroleum Regulatory Commission should issue stricter and most appropriate regulations as provided in the PIA to ensure that Nigerians are not short- changed through profiteering; that the Nigeria Customs Service and Weight and Measures Department of the Federal Ministry of Industry, Trade and Investment be equipped to ascertain the actual daily crude oil lifting from the country for proper checks and balances; that the Committee recommends that the NEITI Act, 2007 be amended by the National Assembly to be in tune with global best practices.

“with the total deregulation of the sector, all the agencies involved in crude lifting/security should have a representative with the Nigeria Navy as a lead agency to physically asses and document daily crude production and lifting, that the Committee also recommends that the Federal Government should as a matter of urgency, liaise with the National Assembly to fashion out critical areas of economic development, which the additional revenue from the proposed subsidy removal will be appropriately utilized, and that given the constrain of the Committee and overlapping events, the National Assembly (HR) Standing or Ad-hoc Committees be saddled with such responsibility to conduct full-scale investigation on the defaulting oil companies and MDAs that have not met the expectations of the Committee to ascertain their level of involvement or otherwise and further protect the commonwealth of the country.”

Similarly, the House considered and passed the report of a Bill seeking for an Act to Repeal the Defence Industries Corporation of Nigeria Act, 2004 and Enact the Defence Industries Corporation of Nigeria Act, 2023 to Operate, Maintain and Control Subsidiaries and Ordnance Factories for the Manufacture, Storage and Disposal of Ordinance and Ancillary Stores and 

Materiels sponsored by the Chairman Committee on Defence, Hon. Babajimi Benson. (APC, Lagos).

Meanwhile, the House deferred the  consideration of a report on a senate Bill for an Act to Amend the Corrupt Practices and Other Related Offences Act, 2000 to strengthen the Role of the Independent Corrupt Practices and Other Related Offence Commission, and allow it Prosecute Cases before the Federal High Court, and a Bill for an Act to amend the Public Procurement Act, 2007 to provide for the inclusion of the Nigerian Institute of Architects in the Membership of the National Council on Procurement, Payment of 30% Mobilization fee to Contractors as well as Project Consultants, Promotion of Local Content in Procurement solicitation.

The deputy speaker of the House, Hon. Idris Wase ruled that members needed time to go through the report, slating June 6 as a new date for the consideration of the report.