Govt overshoots subsidy limit by N771bNNPC, marketers get N165b in eight monthsLabour says no deal with govt on subsidyMAN lists benefits of deregulationEMOTIONS ran high and the debate on the propriety or otherwise explosive. From the positions they canvassed, it was easy to see where the senators who contributed to the debate belonged on the planned removal of fuel subsidy by the Federal Government.Senate President David Mark, who presided at the session yesterday, tried to keep the discourse on course. Occasionally, Mark would put off the micrphone from his table for some senators, who were taking the debate to the extreme.The Senate admitted that a strong cartel was milking the nation dry of its hard-earned revenue through the fuel subsidy policy of the Federal Government.It, therefore, directed the Senate Committees on Petroleum Resources (Downstream), Appropriation and Finance to investigate the fuel subsidy scheme.The whole debate was initiated by Abubakar Bukola Saraki who filed the motion to investigate the management of fuel subsidy a few weeks ago.Before putting the question on the motion, Mark said there is a cartel within the petroleum industry that has robbed the Nigerian masses of the benefits of subsidy.'Anything that has to do with fuel subsidy must be brought forward. In my personal view, there is a cartel within the petroleum industry and whatever they do, is exclusive to them. Ninety per cent of us are totally outside the circle and we don't know what happens. It is necessary to open it up. The crucial issue here is how much we have spent on fuel importation; who are the beneficiaries and has the subsidy achieved desired goals and targets''These issues must be taken together. Whether the figures here are right or not, we must congratulate Saraki for the motion. It is timely, it is a wake up call. It has brought out so many things; we must look at the issues brought out.'The question was put and the motion was committedto Senate Committees on Petroleum Resources (Downstream), Appropriation and Finance to investigate the fuel subsidy scheme.Altogether, well over 13 senators contributed to the motion sponsored by Bukola Saraki of Kwara. They incuded Victor Ndoma-Egba, Henekein Okpobri, Sanni Stor, Kabir Gaya, Hope Uzodinma, George Thompson Sekibo, Abdul Ningi, Ayogu Eze, Sola Adeyeye, James Manager, Ali Ndume, Enynnaya Abaribe, and Emmanuel PaulkerThe lawmakers were unanimous that the policy had been abused, raising a moral burden on whether it was desirable.Even the Executive arm of government's implementation of the fuel subsidy scheme was queried by the Upper House. The government was accused of spending beyond the amount appropriated for fuel subsidy without recourse to the National Assembly as stipulated in the constitution of the country.The debate on the fuel subsidy controversy was not solely the affairs of the Senate yesterday. Orgainsed Labour, the Manufacturers Association of Nigeria (MAN), and the Lagos State Council of the Nigeria Union of Journalists (NUJ) advancedopposing views on the matter.While Labour insisted that they had not reached a deal on the policy with the government, MAN listed the benefits that would acrrue to Nigeria from the deregulation of the downstream sector of the petroleum insdustry. The NUJ advised the government to build more refineries and make the existing ones functional. The union argued that an import-driven deregulation would hurt the ordinary Nigerians and the economy at large.At the end of the debate, the Senate raised a panel to investigate the implementation of fuel subsidy over the years.Leading the debate on his motion titled: 'Investigation into the current fuel subsidy management,' Saraki, the immediate past governor of Kwara State,noted that the government operates a fuel subsidy scheme to make petroleum products available.According to him, N240 billion (N20 billion monthly) was being appropriated from 2011 budget for fuel subsidy.He said of the N20 billion monthly allocation, N11.2 billion was approved for domestic fuel subsidy for the Nigerian National Petroleum Corporation (NNPC) while N8.8 bilion goes to independent marketers for the same purpose from the 2011 Appropriation Act.Saraki stressed the need to make the scheme more transparent and competitive within an appropriate legislative framework and in compliance with the Appropriation Act.He said although N20 billion was set aside for subsidy monthly in this year's budget, by last August the amount spent was N165 billion, of which NNPC accounted for N88 billion and the independent marketers N77.7 billion.The lawmaker added that at the end of August 2011, N931 billion was spent, which isN771 billion or 700 per cent above the N240 billion contained in the budget.He expressed worries that 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, the figures had ranged between N150 billion and N186 billion.Most senatorswho contributed to the debate agreed that the management of fuel subsidy had been shrouded in secrecy and it was time to carry out an inquest into it. They described it as a critical motion.The Senate also yesterday confirmed the nomination of Mrs. Margaret Nwuese Ichen (Benue State), Muhammad Bello Alkali (Kebbi), Dr. Salihu Bello (Adamawa), and Alhaji Ado Ahmed representing Jigawa State as members of the Federal Character Commission.The nomination of Chief Teddy Obi Akwari from Imo State was rejected following objection by Uzodinma and Nwogu, both from Imo State.The Nigeria Labour Congress (NLC) yesterday said contrary to reports that the government had reached a truce with it on the removal of the subsidy, the parties had not even met.The NLC President, Abdulwaheed Omar, said in Benin City yesterday when he led his team to visit the Oba of Benin that they were in the state for the National Administrative Council meeting of the union.He appealed to Oba Erediauwa to intervene on the issue by appealing to the government to stop the move because it would bring more hardship to Nigerians.'We have not reached any deal with the government, it is not our own version of Labour, as you can see it is one of the things we are going to discuss today (yesterday) in our meeting. NLC has its position on the issue of removal of subsidy. It is clearly documented. Nobody can do other things outside that unless the organs of the congress itself. We have not even met with anybody,' he told reporters shortly after his visit.Omar said: 'We believe with people like you who can talk to people anywhere in this country and they will listen, if you lend your weight to this issue, I am sure government will answer. We are concerned that Nigerians are once again going to be plunged into a very serious financial and economic problem that we don't think they can bear. We believe in the unity of this country, we believe in the progress of this country,' he said.The monarch thanked the Labour leaders for their visit, adding that the NLC had been very committed to issues that affect most Nigerians.He said: 'I can remember that the last time you were in Edo, it was with the governor (Adams Oshiomhole), who then was your president. Since then, he (Oshiomhole) has gone on to be what he is today, and he has transformed the state' the rest all of you can see.'Labour has offered a lot in the past and I ask you to continue to be good ambassadors of the people.'To MAN President, Chief Kola Jamodu, the complete deregulation of the downstream oil sector would break the cartel that had held the country to ransom and encourage competition and rapid economic growth.Jamodu argued that a deregulated petroleum sector might seem painful to Nigerians in the beginning, but its overall benefits outweigh the initial discomfort.He added that in the long-run, the economy would be better for it as more opportunities would be created for both employers and employees who are not performing optimally now because of the limitation posed by the slow growth of the economy.He told journalists in Abuja yesterday that deregulation is a necessary sacrifice that Nigerians must make for the good of the country.Jamodu, a former President of the Nigerian Association of Chambers of Commerce, Mines, Industries and Agriculture (NACCIMA), stressed that although members of the organised private sector were still in discussion with government on deregulation, it is apparent that deregulation is the only measure that can jumpstart the economy.In a statement issuedby NUJ Chairman, Deji Elumoye and Secretary, Sylva Okereke at the end of its October 2011 Congress in Ikeja, the union noted that the country now imports most of the needed petroleum products while its refineries were working below capacity.Elumoye said the current subsidy is made up of costs borne out of the inability of the government to manage the country's four refineries effectively and efficiently.
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