The Senate yesterday rejected the removal of subsidy on petrol and kerosene presently subsidised by the federal government as proposed by its committee on finance.
It also ordered the Nigerian National Petroleum Corporation (NNPC) to remit to the federation account, the sum of $218 million; and another $262 million being expenses the corporation could not satisfactorily defend in respect of Holding Strategic Stock Reserve; Pipeline Maintenance and Management Cost and Capital Expenditure.
It also directed the NNPDC to remit the sum of $447 million being balance of Royalty and Petroleum Profit Tax to the federation account.
Majority of Senators who took their turns to contribute during debate on the report argued that the recommendation for removal of subsidy on petroleum products would be the greatest disservice to the masses.
In his ruling, the Senate President, David Mar, said: “On the issue of subsidy, I want us to be mindful so that we don’t pitch ourselves against the public opinion.
“If subsidy has to go, the people should decide after there must have been massive enlightenment by government to ensure that the people are carried along.”
The committee in its report had stated that the CBN, NNPC, Ministry of Finance and the Ministry of Petroleum Resources had agreed after reconciliation that $47 billion out of the $67 billion had been credited to the Federation Account.
The committee stated: “The problem of non-remittance of revenues by the NNPC was not new and it was not the CBN that first disclosed it.
It, in addition, asked the Senate to accept the subsidy deducted by NNPC in the sum of N180 billion for the fourth quarter of 2011 which was also certified by the PPPRA and appropriated by the National Assembly.
The committee further advised the NNPC to ensure due process and diligence in their operations, and urged the Senate to urgently pass the Petroleum Industry Bill (PIB) into law so as avoid the mistakes of the past.
