The Nigerian National Petroleum Corporation Limited, NNPCL, withholds N8.4 trillion due for remittance to the federation account purse between 1st January, 2022 to date as fuel subsidy cost.
The amount reflected in the record of the Office of the Accountant General of the Federation(OAGF)is yet to be reconciled by the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) Office of the Auditor General of the Federation’ AGF, and NNPCL.
Executive Chairman, Revenue Mobilization Allocation and Fiscal Commission (RMAFC) Mr. Mohammed Bello Shehu who confirmed the figure described subsidy removal announcement by President Bola Ahmed Tinubu, “a master stroke , in appropriate step in the right direction”.
The NNPL, a hitherto major contributor to the Federation Account Allocation Committee ( FAAC) had last year , halted the monthly revenue contribution to federation purse on account of fuel subsidy shouldering.
Miffed by NNPL zero remittance to FAAC purse, state’ Executive Governors of states through their platform – the Nigeria Governors ‘ Forum( NGF) engaged the management of NNPL to no avail.
Shehu in a statement reiterated RMAFC’ support for the recent subsidy removal announced by President Bola Ahmed Tinubu during his inaugural address describing it as long overdue and a major challenge to the economic growth and development of the country.
According to RMAFC boss, a situation whereby the records of subsidy transactions are not transparent and crude oil prices are being determined globally, it would be unwise to sustain the phantom payments of subsidy at the detriment of other critical sectors of the economy thus making its sustainability difficult for the Government.
He emphasized that the removal of fuel subsidies will eliminate the alleged uncertainty surrounding the subsidy regime just as it will free funds for the execution of critical national development and human capital enhancement projects such as the provision of an affordable transport system, Investment in the Education Sector, improvement in Health care and infrastructural development, and resuscitation of domestic Refineries to eliminate dependence on imported fuel, amongst other key sectors.
The Commission , Shehu recalled had consistently expressed its position on the vexatious issue of subsidy removal since the time of late Hamman Tukur who chaired the Commission during the administration of former President Olusegun Obasanjo.
According to Shehu, the Commission’s position was premised on the fact that the continued payment of humungous amounts to a privileged few in the name of subsidy was a major drain on the nation’s scarce resources as the Nigeria National Petroleum Company limited (NNPCL) one of the major sources of revenue to the Federation Account had since stopped contributing to the national pause due to the fuel subsidy regime which is characterized by opaqueness and other ambiguities.
“As one of the fourteen Federal Executive Bodies established by section 153 (1)(n) and empowered by paragraph 32 (a) and (c) of part 1 of the Third Schedule of the 1999 Constitution(as amended), RMAFC has the constitutional mandate to monitor the accruals to and disbursement of Revenue from the Federation Account and also advise Federal and State Governments on fiscal efficiency and methods by which their revenue can be increased.
“The country can no longer sustain fuel subsidies whose demerits far outweigh its benefits to the citizenry. It is saddening to note that since 1st January, 2022 to date, the Nigeria National Petroleum Company Limited (NNPCL) has not been contributing to the Federation Account due to the claimed subsidy payments. The total amount withheld by the NNPCL as claimed subsidies for this period amounted to N8,480,204,553,608.13 as reported by the Office of the Accountant General of the Federation(OAGF) which is yet to be reconciled by the RMAFC, OAGF, and NNPCL”.
He adds that in a situation whereby the records of subsidy transactions are not transparent and crude oil prices are being determined globally, it would be unwise to sustain the phantom payments of subsidy at the detriment of other critical sectors of the economy thus making its sustainability difficult for the Government.
Mr. Shehu further emphasized that the removal of fuel subsidies will eliminate the alleged uncertainty surrounding the subsidy regime just as it will free funds for the execution of critical national development and human capital enhancement projects such as the provision of an affordable transport system, Investment in the Education Sector, improvement in Health care and infrastructural development, and resuscitation of domestic Refineries to eliminate dependence on imported fuel, amongst other key sectors.
The Commission’s Chairman also poured encomiums on the administration of former President Muhammadu Buhari for providing the necessary enabling environment for the successful take-off of the first private refinery easily the largest in the World built by Aliko Dangote, the World’s wealthiest Black Man believing that when it becomes operational, the country will witness a glorious dawn in hassle-free oil production and distribution in the absence of subsidy regime.
While commending President Bola Ahmed Tinubu, for his uncommon courage and political will in doing away with the issue of fuel subsidy, he urged the new administration to work out strategies that would cushion the attendant effect of the new policy adding that deterrent measures should be earnestly taken to bring to book all the economic saboteurs who have contributed to our National adversity in accordance with the extant laws of the Federation.
