Intrigues and controversies continue to trail the proposed removal of oil subsidy, with the federal government, state Governors and members of the National Assembly in the fray, as SAMSON EZEA reports.THE proposal did not come to many people as a surprise, considering that during the April polls, the government expended a lot of money that needs to be recouped by a hike in the price of fuel under the guise of subsidy removal, a Labour leader told to The Guardian recently.Investigations show that the Presidency is determined to remove the subsidy and had been lobbying the leadership of the National Assembly on the issue.A source in the Presidency disclosed that immediately the proposal was sent to the National Assembly (NASS), President Goodluck Jonathan, Minister of Finance, Mrs. Ngozi Okonjo-Iweala, and her Petroleum counterpart, Mrs. Diezani Alison-Madueke met with the leadership of the Assembly at the Presidential Villa, where they tried to convince them to see the need to support the subsidy removal.The source said the NASS the leadership assured the President of their support, but expressed concerns about a possible position of their colleagues and other Nigerians, especially in the face of the nation's economic situation.But the Presidency made it clear that the government might face a cash crunch if the proposal did not sail through, owing to the recent increase in the minimum wage and other capital expenditures.It was on that basis, the source disclosed, that the leadership of the Senate allowed debate on the removal on the floor of the chamber. But when tempers rose in the process, the leadership referred the matter to three committees-Finances, Appropriation and Petroleum, which were given two weeks to submit a report to the Senate for further action.As of last week, the committees were expected to have submitted the reports, but that has not been possible, just as the Presidency has intensified pressure on the two chambers to back the removal.Apart from pressures on the leadership of the National Assembly, it was gathered that the Presidency has also enlisted the support of state governors through the Nigeria Governors Forum (NGF), as confirmed by one of the governors from the Southeast.'We have been approached for support. Though some of us are skeptical on what will be the outcome if we support, some have already supported it.'So, it appears we are divided on the matter. I can say we are still weighing the option,' the governor said.It has also been learnt that a huge sum of money has been earmarked by the Presidency and the Nigeria National Petroleum Corporation (NNPC) for media campaign on the removal.State GovernorsTHEIR position would go a long way in determining the success or failure of the proposal.Having been engaged by the Presidency with a promise that the removal would make enough money available to them for infrastructural developments and to cover administrative challenges, it is becoming obvious that the state executives may accede to the request.It was learnt that they were assured by the Presidency that with the removal of the subsidy, their agitation for a review of the revenue allocation formula would be realised.Some governors, especially those in the opposition parties, were alleged to be averse to subsidy removal, insisting that government must plug loopholes in the NNPC and Petroleum Products Pricing and regulatory Agency (PPPRA) for effective and efficient management of the oil sector.However, in the face of this, indication emerged that some governors in the ruling Peoples Democratic Party (PDP) are mounting pressure on the National Assembly members from their states to endorse the proposal.One of the lawmakers from the South-South said his state governor had told them pointblank, to endorse the subsidy removal, if they are interested in returning in 2015.'As it is now, some of us in the ruling party at the National Assembly are already under pressure to endorse the removal.'We are worried and afraid that considering the level of opposition in the House of Representatives, it may be difficult to get majority to endorse the removal, especially with agitation and criticisms that had trailed it since it was made public.'There are indications that the governors might meet with the President this week to fine-tune their strategies ahead of the NASS debate on next year's budget proposals.The National AssemblyAS the Senate await the report of its Committees mandated to investigate how subsidy funds were spent in the past years, which has adduced no reasons for the delay in turning in their reports, one of the opposition senators disclosed that the Presidency had already met with the chairmen of various committees in both chambers to seek their support for the proposal.He said: 'The Presidency is already mounting pressure on some of us, but majority of us are not yielding to their antics until they do what is right to convince Nigerians that there is subsidy truly.'They have met with committee chairmen in both chambers, but those people are in minority and cannot influence most of us. It is obvious that the Presidency knows the cartel milking the oil sector.'Promising that the report of the committees would be made public whenever they are submitted,the senator admitted that some NASS members had benefitted immensely from the alleged oil cartel and were doing everything possible to cover their tracks.'But majority of us will not agree. There is nothing like subsidy; it is only that NNPC is abdicating its statutory responsibilities of importing and exporting crude oil to some individuals close to the corridors of power.'These individuals hide under the cover of NNPC to get cheap crude oil, which they export and refine, only to import and sell to the NNPC at international price.'That is what they call it subsidy; it is subsidy of fraud. We are waiting for them to come and defend their position on the removal with convincing evidence and facts,' the senator fumed.It was gathered that the NASS members from the North and opposition members in both chambers might serve as a stumbling block to the Presidency's push for the proposal.While it was alleged that most members from the North believe the region would be greatly affected by the policy, those in opposition from the Southwest argued that the government, NNPC and PPPRA must live up to expectation by curbing corruption in the sector before subsidy can be removed.Labour UnionsLIKE past agitation over hike in the price of fuel, labour unions are preparing for a showdown with government over the proposal and have given the government conditions that must met before thinking of removing the subsidy.But The Guardian investigation reveals that the challenge before the union might be that of their state leaderships, which are part of the decision-making body in a strike situation.It is alleged that most state leaderships have been pocketed by their state governors, who have started reaching out to some of them ahead of any crisis that might trail the implementation of the subsidy removal.What worries Labour, according to a source, is the lack of trust of most state leaderships of the union, 'which was why it took the intervention of the national leadership of the unions for some of the state governors to implement the N18, 000 minimum wage.'He added: 'While the governors are mounting pressure on the state leadership of the unions, the Presidency is also reaching out to the national leadership to support the removal.'If majority of the state leaders are 'captured,' the national leadership has no option than to cave in, because the state leaderships, in most cases, determine how decisions are reached.'In an exclusive interview with The Guardian recently, president general of the Trade Union Congress (TUC), Peter Esele, stopped short of admitting the dilemma when he said: 'It is not the Nigeria Labour Congress (NLC) president or myself that is labour. We have the National Executive Council (NEC), which comprises chairmen and secretaries of the 36 states and the Federal Capital Territory (FCT) presidents of affiliate unions, past presidents, national administrative council members and the Central Working Committee (CWC) members.'If all these people voted, can I come and say what they agreed or voted was wrong''He emphasised: 'Government takes advantage of a lot of lapses in our people. It is not about Labour; we are stronger when we are together. Everybody is involved, because we all feel the impact.'Cartel In The Oil SectorINVESTIGATIONS have revealed that the so-called cartel merely serve as fronts for government officials, who hide under the cover of the NNPC to export and import refined oil, which they sell to the NNPC at international market price.Sources in the sector disclosed that the cartel serves as conduit pipe for those in position of authority to generate resources to finance their elections, at the expense of other Nigerians.
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