With the removal of the oil subsidy, the House of Representatives has asked the Auditor General of the Federation to immediately carry out a forensic audit of the N413 billion borrowed from the Central Bank of Nigeria (CBN) by the federal government for subsidy payments.
This followed the adoption of the report of its adhoc committee on the need to investigate the petroleum products subsidy regime in Nigeria led by Hon. Rep. Ibrahim Almustapha Aliyu.
In adopting the recommendations of committee, the House said “A further investigation through a forensic audit by the office of the Auditor General of the Federation be made to ascertain whether the N413billion 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.”
The House also advised that “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”.
Other recommendations made by the House include: “That 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 system to ease mass movement of people across the country.
“That the Nigerian Midstream 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.
“That the Revenue Mobilisation Allocation Committee should lead 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 asses and document daily crude production and lifting.
“That the Committee also recommends that the federal government should as a matter of urgency, liaise with the National Assembly to fashion out critical areas of economic development, which the additional revenue from the proposed subsidy removal will be appropriately utilised.
“That 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.
“That the Committee recommends that the NEITI Act, 2007 be amended by the National Assembly to be in tune with global best practices.
“That given the constrain of the Committee and overlapping events, the National Assembly (HR) Standing or Ad-hoc Committees be saddled with such responsibility to conduct full-scale investigation on the defaulting oil companies and MDAs that have not met the expectations of the Committee to ascertain their level of involvement or otherwise and further protect the commonwealth of the country”.
