Senate vows to end corruption in oil industry
Read Time:2 Minute, 46 Second
Worried by the persistent queues at filling stations nationwide, the President of the Senate, Bukola Saraki has vowed that the National Assembly would continue to expose corruption in the petroleum sector irrespective of the status of those involved in the act.
This is even as the Nigerian National Petroleum Corporation, NNPC said that it is being owed N170.6billion by the Nigerian Federation as outstanding subsidy payments between January 2006 and December 2015.
Saraki who made the vow while declaring open a two-day public hearing on the investigation of over N5trillion subsidy payment to the Nigerian National Petroleum Corporation, NNPC between 2006 and 2016 by the Senate Committee on Petroleum Resources (Downstream), said the unconstitutional and illegal practice must be addressed and that the Senate would not rest until it is fully addressed.
Saraki who was represented by the leader of the Senate, Sen Ahmed Lawal said the Senate had cut short the end of year recess of the committee to immediately intervene and investigate the root causes of the recent resurfacing of queues at pump stations nationwide, adding that its “findings have brought to light the fact that our downstream oil and gas industry needs critical reforms”.
National Assembly correspondent Folashade Abdulsalami reports that the Lawmaker further stressed that the Senate was determined to get to the bottom of the subsidy controversy charging the committee to get to the bottom of the issue and proffer long lasting solutions to the racketeering in the fuel market that leaves the Nigerian people poorer every year.
Sen. Ahmed Lawal
Senate Leader
Chairman of the committee, Sen Kabiru Marafa ( APC Zamfara Central ) commended NNPC for the elaborate presentation while pledging its support to all stakeholders in the sector to ensure uninterrupted supply and distribution of petroleum products.
He also queried NNPC over subsidy collected in the products refined locally, saying that any subsidy received on local products is quite unacceptable.
He however requested the backing documents on who authorised the NNPC to collect subsidy on local products.
Sen. Kabiru Marafa
Chairman Senate Committee on Petroleum Downstream.
Making a presentation on behalf of the NNPC, the Group Managing Director of the Corporation, Maikanti Baru said the figure was arrived at after deduction of N4.950.80 trillion received as payments from theN5.121.40 trillion approved subsidy claims of the corporation from January 2006 to December 2015.
Maikanti Baru
NNPC, GMD
The NNPC Chief Financial Officer, Mr Isiaka Abdulrazak, also justified the payment saying that subsidy is a duly authorized reimbursable amount from Petroleum Support Fund (PSF) to compensate for products supplied at government regulated price.
He further urged the committee to assist in ensuring that the outstanding debt was settled to enable NNPC effectively achieves its obligation as the supplier of last resort to the downstream sector.
Mr Isiaka Abdulrazak
NNPC, Chief Financial Officer.
In the meantime, the public hearing spotlighted the importance of the recently passed Petroleum Industry Governance Bill (PIGB), which after many years and several obstacles faced, has been passed by the Senate and the House of Representatives for the first time in 17 year and is ready for the assent of Mr. President.
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