Introduce Measures To Reduce The Effects of Fuel Subsidy On Nigerians – Reps tell FG.

The House of Representatives have asked the federal government to introduce measures to reduce the effects of fuel subsidy on Nigerians. These methods include the purchase of natural gas-powered buses to reduce the impact of the fuel subsidy on the transportation sector. The lawmakers have also asked the government to remove subsidy on other products other than Premium Motor Spirit (Petrol).

The House of Representatives has implored the federal government of Nigeria to purchase buses which operate using Natural gas as a palliative in order to cushion the effects of fuel scarcity in Nigeria, most especially on the issue of transportation.

This was done at the plenary Session on thursday after a report done by an Ad-hoc committee was adopted. The ad-hoc committee evaluated Nigeria’s petroleum subsidy regime in Nigeria from 2013-2022

The report was considered by the Committee of the Whole and the recommendations proposed adopted.

The House of Representatives came to a resolution that

“The federal government should out rightly remove subsidies on all petroleum products,” adding that palliative measures should be provided. These palliative measures include the purchase of CNG vehicles.

“The federal government should immediately design measures and palliatives to cushion the effects of the subsidy removal for Nigerians effective from this year 2023 through the provision and procurement of CNG Busses as an alternative Transport System with Cheaper Fuel Consumption. The government should also introduce intermodal, regional and national transport systems to ease mass movement of people across the country,”

In 2020, the Former Vice President Yemi Osinbajo had announced plans by the government to convert commercial vehicles to natural gas. The last administration designed the CNG conversion as part of the process for the removal of petroleum subsidies.

However since the announcement in 2020 by the former Vice President, Yemi Osinbajo little has been heard about the project. But the Dangote Group of Companies converted about 4000 trucks to operate on Natural Gas.

The House of Representatives also indicated that

-The federal government should put an end to the Direct Sales Direct Purchase (DSDP) policy and call for a forensic audit of the policy;

-The Nigerian Midstream and Downstream 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;

-The Revenue Mobilisation Allocation Committee recommended that there should be a reconciliation meeting between NNPCL, FIRS and JVCs and the Commission on the utilisation of their crude entitlements;

-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 assess and document daily crude production and lifting.

-The federal government should, as a matter of urgency, liaise with the National Assembly to fashion out critical areas of economic development, in which the additional revenue from the proposed subsidy removal will be appropriately utilised.

-A further investigation through a forensic audit by the office of the Auditor General of the Federation be made to ascertain whether the N413 Billion 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.

-With the subsidy removal, the federal government should forthwith suspend all Direct Sales Direct Purchase (DSDP) contracts. NNPCL should act by the provision of the PIA to ensure that the country is not sub-changed in both production, lifting and sales of crude;

-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;

The Lawmakers have however commended the president on the removal of fuel subsidy and have asked Nigerians to remain patient.

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