Tag: Fed Govt

  • Magu: NBA chief urges Fed Govt to obey court decision

    Magu: NBA chief urges Fed Govt to obey court decision

    Nigerian Bar Association (NBA) Second Vice President Monday Ubani has urged the Federal Government to obey the judgement of a Federal High Court, Abuja which held that the Senate acted within the law when it rejected the nomination of Ibrahim Magu as the Economic and Financial Crimes Commission (EFCC) chairman.

    Justice John Tsho, delivering judgment on a suit filed by a lawyer Oluwatosin Ajaomo, held that Magu’s appointment was incomplete without Senate confirmation.

    He held that the Senate was empowered to confirm or reject any appointee to the office of the chairman of the EFCC by the president.

    Ubani said unless the executive has  secured a contrary judgement from the appellate courts, “it is not a good name for any arm of government to be known for disobeying court orders and judgements”.

    He argued that for now, the position of the  law is that the  chairman of efcc must be confirmed by the Senate.

    “The executive is advised to do the needful to avoid being branded as not respecting the rule of law and obeying the Judgement of the Court of the land,” he said.

    According to him, “we must understand and appreciate the role of the judiciary in democracy. The most important role actually is to interpret the law where there is any cloud of misunderstanding surrounding the intention of the law makers  involving  two warring or contending parties.

    “In the case under analysis, the executive and the legislature seem to have a bit of interpretation problem as to the confirmation of the position of the Chairman of EFCC by the Senate.

    “While the Senate believes that the Chairman of EFCC should be confirmed by the Senate in accordance with the EFCC Act, the executive thinks otherwise citing a favourable part of the section of the 1999 constitution as amended that created a leeway for the executive to avoid seeking such confirmation of that position by the Senate.

    “Such misunderstanding has created political logjam for both arms of government to the extent that other persons that ordinarily should have been confirmed by the Senate have been put in abeyance for some months now thereby creating political crisis for the government at the centre. Reason prevailed and the matter was submitted to the judiciary for adjudication which has held that the Senate should actually confirm the position of the Chairman of the security agency.

    “The position, therefore, is that the law of the land with regards to confirmation of the chairman of EFCC is that the Senate must be involved in the confirmation of the position of the Chairman of that body as prescribed by the Act creating it notwithstanding the provisions of the constitution which was enacted earlier than the EFCC Act. It may well have been that the constitution never contemplated the provisions of the EFCC Act that makes such confirmation compulsory,” he stated.

    Ubani however said that despite that Justice Tsho said the plaintiff has no locus to institute the suit, the court still treated all the questions that were addressed to it on its merit and ruled on all the questions that were addressed to it.

    He noted  the federal government’s position to the effect that there is a provision in the constitution where it was stated that the EFCC is not one of the agencies that the Senate would confirm its chairman. But experienced practitioners and many others were saying that the EFCC Act came after the enactment of the constitution.

    He said: “If the EFCC Act makes provision that before the chairman of the EFCC must act, he must be confirmed by the  Senate, it then means that is the intendment of that law.”

    Ubani recalled that over time, “the first person that was the chairman of the EFCC, Nuhu Ribadu, was confirmed by the Senate. The second person that was appointed, Mrs Waziri, the woman  was confirmed by the Senate. Ibrahim Larmorde who took over after her was also confirmed by the Senate.

    “So, if all these people over the years have been confirmed by the Senate before they started acting as the chairman, why are we now saying that the constitution does not make provision for the confirmation of the EFCC chairman”, he asked.

    He referred to a similar development in America where Obama appointed somebody in acting capacity beyond the time the law allowed.

    According to him, the matter went to court and the court held that he cannot continue to keep somebody in office in acting capacity when the law says he must be confirmed by the legislative chamber.

    “All this while, I have been arguing that the federal government, the executive can put Magu in office in acting capacity and why I have been saying so was because there has been no pronouncement from the court on this seemingly ambiguous situation that has arisen. It was ambiguous because the Senate is interpreting the law differently, the executive is interpreting the law differently.

    “Now that the judiciary that has the constitutional role of interpreting the law, giving correct interpretation that our law provides and has given that interpretation as to the position of that law, so which other arm of government is there to look up to except they have gone on appeal and have that particular judgment reversed.

    “The current situation now is that the court has recognised that an agency like the EFCC chairmanship that requires confirmation by the senate must be confirmed by the Senate. That judgement stands unless they go on appeal to reverse that judgment”, he stressed.

  • Fed Govt to roll out cancer screening

    Fed Govt to roll out cancer screening

    THE Federal Government has concluded plans to roll-out nationwide screening for most common types of cancers, Minister of Health Prof. Isaac Adewole has said.

    Adewole, in a statement issued by the ministry’s Director of Media and Public Relations, Mrs. Boade Akinola, yesterday in Abuja, also said individuals have roles to play to check cancer prevalent.

    He spoke at a ceremony to mark the 2018 World Cancer Day, with the theme: “We can, I can.”

    The News Agency of Nigeria (NAN) reports that World Cancer Day is cerebrated on the February 4, every year.

    According to the minister, the screening will be on the most common types of cancers, such as breast and cervical cancer in women and prostate cancer among men.

    Adewole added that this year’s theme was geared towards exploring individual and collective drive in reducing the global burden of cancer.

    He said individuals could play their role in fighting cancer through healthy lifestyle choices by engaging in weekly physical activities for at least two and half hours for adult and an hour for children.

    He said other lifestyle modifications included avoiding tobacco smoking and eating a healthy diet, limiting alcohol intake and staying safe under the sun.

    Adewole also emphasised the need to look out for early symptoms and signs of cancer. According to the minister, finding cancer early makes it easier to treat and cure.

    He appealed to communities to dispel myths and misconceptions that led to stigma and discrimination against people living with the disease.

    Adewole added that the commissioning of a new radiotherapy machine at the National Hospital Abuja would provide easy access to radiation treatment for Nigerians.

    He said additional new machine was donated by Shell Nigeria Exploration and Production Company (SNEPCO) and would be in operational at the National Hospital Abuja in the next few months.

    The minister added that the facility at Lagos University Teaching Hospital (LUTH) would be offering full and uninterrupted services from June, this year.”

  • Fed Govt has created millions of jobs, says minister

    Fed Govt has created millions of jobs, says minister

    THE Federal Government has created millions of jobs in sectors of the economythrough its various programmes, according to Minister of Information and Culture Alhaji Lai Mohammed.

    Mohammed spoke at the Sixth Graduation Ceremony of the Empowerment Support Initiative (ESI) founded by former Rivers First Lady Dame Judith Amaechi in Port Harcourt at the weekend.

    A statement by Senior Adviser (media) tothe minister, SegunAdeyemi, quoted him as saying over seven million jobs have been created in the agriculture sector alone.

    He said: “In agriculture, for example, this administration has created over seven million jobs. When the administration assumed office in May 2015, about five million farmers were engaged in rice production. Thanks to the administration’s Anchor Borrowers Programme, the number of farmers engaged in rice production today stands at 12.2 million. These are verifiable facts, not fiction.”

    Mohammed said 69,736 jobs have been created in the Power, Works and Housing Sector. The administration’s National Social Investment Programmes, he added, have created about200,000 jobs, in addition to empowering 500,000 others under the Government Enterprise and Empowerment Programme (GEEP).

    “The Federal Ministry of Power, Works and Housing has created 69,736 jobs (direct and indirect) across the country. The power sector projects created 1,740 jobs, the Works Sector created 38,391 jobs while the Housing Sector created 29,605 jobs,” he said.

    The minister also said the Home-Grown School Feeding Programme, through which 6.4 million school children in 33,981 schools across 20 states are being fed with one meal a day, has created jobs for 61,352 cooks.

    He hailed Dame Amaechi for establishing the ESI programme, which is an entrepreneurial and skills acquisition programme for youths and women of the Niger Delta.

    Such programmes, he said,  complement the Federal Government’s efforts to provide jobs for the citizens.

    “National development is not just the duty of the government, but that of the citizens. In other words, all of us, as citizens, have a role to play in ensuring the development of our nation. This has been amply demonstrated by Dame Judith Amaechi in setting up this Empowerment Support Initiative,” Mohammed said.

    The minister urged the graduands to make the best use of the opportunities that the ESI programme has given them.

  • Fed Govt can’t seem to agree on Benue massacre

    Fed Govt can’t seem to agree on Benue massacre

    WHILE Garba Shehu, a presidential spokesman, was busy taking umbrage at a newspaper columnist who he growled described the president as a murderer over the Benue crisis, and warning that such descriptions amounted to hate speech, government officials and security chiefs were labouring to find common ground on their different perceptions of the Benue massacre. Mallam Shehu may not like what he is hearing about the president, but the perception in most circles is that the number one citizen has behaved less than exemplary in his approach to the herdsmen/farmers clashes in many parts of the country. Indeed, in some instances, the president is perceived to have taken sides.

    The column (not this newspaper) Mallam Shehu complained about was anchored on the widely condemned statement made by the Defence minister, Mansur Dan-Ali, to the effect that the herdsmen attacks were inevitable once grazing routes were blocked. The minister’s view seemed an insensitive  justification of the massacres. But quite apart from wrongly characterising those uncomplimentary views of the president’s approach as hate speech on the same day a Fulani lecturer from Maitama Sule University in Kano all but suggested the supremacy of the Fulani in Nigeria, it has also become clear that government officials, including, sadly, security chiefs, are unable to agree on the cause and course of the farmers/herdsmen clashes.

    The puzzle is how without a consensus on the causes and course of the bitter and bloody struggle going on in many parts of the country the government can still manage to devise a solution. There have been scores and scores of debates and analyses to explain the clashes. They range from exculpating the local Fulani and putting the blame on foreign Fulani invaders, to ascribing the bloodletting to the Islamic State in West Africa (ISWA) without a shred of evidence, and to suggesting laughably that the problem is a communal misunderstanding criminals are taking advantage of. Other explanations include blaming feuding farmers and herdsmen militias, and even suggesting that the anti-open grazing laws of Benue and Taraba States were responsible for the clashes. Those who blamed grazing laws did not explain why the clashes and body count predated the laws.

    While it is true that one reason does not explain the clashes, it is downright dishonest for the government to pursue red herrings when the real reasons stare them in the face. Worse, as many have suggested, it is clear that the narrow composition of the country’s security apparatus has eroded the impartiality of the government and robbed it of the healthy debates and balanced perspectives required to help produce quality decisions. In their debates, assuming they do not just deferentially reinforce one another’s biases, they are unable to accommodate different and countervailing views. This was why the Defence minister caused an outcry when he came out angrily to justify the bloody clashes. This was also why the Inspector General of Police, Ibrahim Idris, also came out without any logic to blame the anti-open grazing laws of Benue and Taraba States despite the fact that farmers/herdsmen clashes predated the law and continue to take place in states where such laws do not exist.

    It is hard not to conclude, as the Senate did, that the government has not done enough to curb the bloodletting. It is also not baffling that many commentators are shocked by the government’s apparent bias. Perhaps it is time the presidency held a mirror to its face on the herdsmen crisis. It will see nothing but indecision, paralysis and confusion. That Mallam Shehu considers these worried but trenchantly uncomplimentary view of the president’s pussyfooting as hate speech and disrespectful characterisation is all the more shocking and depressing.

  • Senator ot Fed Govt: explore diplomacy on Cameroonian soldiers invasion

    Senator ot Fed Govt: explore diplomacy on Cameroonian soldiers invasion

    The Senator representing Cross River Central, John Owna Enoh, yesterday asked the Federal Government to quickly explore official channels of communication between the country and Cameroon to protest the violation of the territorial integrity of Nigeria by Cameroon soldiers.

    Enoh said that exploring diplomatic means to deal with the issue became imperative following reports that about 100 Cameroon soldiers allegedly crossed the international border into Danare on Monday night in search of the country’s militants in a crackdown on Anglophone secessionists said to have sought refuge in Nigeria.

    The Cross River Central lawmakers in a statement recalled that the latest attack came on the heels of a similar attack on the same communities which falls within his constituency in December 2017.

    Enoh said that in swift response to the dastardly attack on law abiding citizens of Danare, he through a motion of urgent national importance on the floor of the Senate, drew the attention of Nigerians and the government to the unwarranted attack.

    The lawmaker noted that he had among other prayers, called on the federal authority to deploy troops to Danare as a deterrent to stem further incursion and aggression on his constituents by Cameroonian soldiers.

    The deployment of a battalion of Nigerian soldiers in the area, he said, seems not to have deterred the incursion from Cameroonian soldiers.

    He described the latest invasion of Danare as unfortunate, condemnable and “constitutes a gross violation of the inalienable rights of my people to peaceful co-existence.”

    He insisted that “the peaceful and law abiding citizens of Danare deserve a peaceful environment in order to pursue their legitimate aspirations.”

    The incessant violation of the inalienable rights of the people, which he described as fundamental, by Cameroonian soldiers, he said, is unacceptable.

    “I therefore use this medium to call on the Federal Government to explore all official channels of communication between Nigeria and Cameroon to protest this violation of the territorial integrity of our nation,” he said.

    Enoh said that Nigerian troops who have already been deployed in Danare should live up to their professional calling in defence of the people of Danare.

    According to him, the presence of Nigerian troops reassuring as it is to the people of Danare, should not be mere tokenism but should be informed by a full evaluation of the military challenges and the consequent deployment of adequate number of soldiers who will be in the position to respond adequately to deter further attacks.

    Enoh appealed to the Nigerian soldiers on ground to continue to fully discharge their professional duties in defence of the people of Danare and the territorial integrity of the Nigerian State.

     

  • Onyeama: Fed Govt winning  foreign investors’ confidence

    Onyeama: Fed Govt winning foreign investors’ confidence

    Minister of Foreign Affairs Geoffrey Onyeama has said the Federal Government is winning foreign investors’ confidence through the fight against corruption and the Ease of Doing Business policy.

    He added that the success of the Federal Government’s foreign policy is dependent on the quality of content being aired to the world by the media. The media, the diplomat said, has a key role to play in changing the perception of foreign investors about Nigeria, urging members of the fourth estate of the realm to support government’s efforts to drive inclusive economic growth through foreign direct investment.

    Onyeama spoke on Tuesday night when he delivered the keynote address at the Diplomatic Night organised by The Island Club. The event, which hosted businessmen and members of diplomatic community, was held to facilitate business opportunities for members of the club through embassies and high commissions.

    Speaking on the theme: The Nigerian Foreign Policy in a Changing World: What Role for the Nigerian Media?, Onyeama, represented by former Nigeria Ambassador to Sierra Leone Mrs Gladys Adebiyi said: “The Nigerian media owes the country’s teeming population a duty of reporting objective and accurate information on the activities of government, especially as it relates to the tripod policy thrust of the Buhari administration.

    “The media cannot shy away from being objective as this is one of its roles in the changing world. If the constant flow of information is not properly managed, it could become an impediment to the national security since news coverage on certain topics may lead to disclosure of classified information. The role of the media in reporting foreign policy and national interest, if not properly managed, could compromise national security interest and socio-economic development.”

    The chairman of the occasion and former Minister for Foreign Affairs, Gen. Ike Nwachukwu (rtd), noted that it was a wrong notion to describe Nigeria as the most corrupt country in the world based on financial crimes committed by a “tiny fraction” of the populace.

    He described Nigerians as good people, saying it was wrong for the West to paint all Nigerians with the same brush used for people committing advanced fee fraud. He said corruption was not synonymous with Africa alone, noting that the West remained unrivalled in graft.

    Nwachukwu, who was a journalist before joining the military, said: “No country in the world is made up of angels. Every country is managing its image. I do not support corruption, but I know Nigeria is not the most corrupt country in the world. The media has role to play in telling the world who we are. It is the way we paint ourselves on the television, newspaper and on the internet that the people in the world over would take us.”

    Responding on behalf of the diplomatic corps, Ambassador Philip Sinou, said the event would go a long way in fostering relationship between Nigerian business community and members of diplomatic corps.

    The club chairman, Mr Olabanji Oladapo, said the Diplomatic Night was created in the 1950s by the club to enhance interaction and healthy relationship between the club members and diplomatic community.

  • Fed Govt not paying oil subsidy, says Adeosun

    Fed Govt not paying oil subsidy, says Adeosun

    •FEC okaysN2.328b to check rice smuggling, others

    •Elizade wins N1.128b vehicle supply contract

    Minister of Finance Mrs Kemi Adeosun yesterday said the Federal Government is not paying subsidy on oil.

    She spoke at the end of the Federal Executive Council (FEC) meeting chaired by President Muhammadu Buhari at the Presidential Villa, Abuja.

    She was with the Minister of Information, Lai Mohammed, Minister of Power, Works and Housing, Babatunde Fashola and the Minister of Mines and Steel, Kayode Fayemi.

    According to her, the Nigerian National Petroleum Corporation (NNPC) is directly bearing the loss, which also has impact on what goes to the Federation account.

    Speaking onsubsidy, she said: “On the question of subsidy, the price of oil for Nigeria today is a double-edge sword. So, every dollar that goes up we get more revenue but also because we are importing refined petroleum increases the landing cost of fuel.”

    The council also approved N2.338 billion for the purchase of operational vehicles for anti-smuggling task force and for acquiring staff accommodation.

    Mrs Adeosun said N1.2 billion was approved for acquiring bedroom units at Life Camp in Abuja for Customs and N1.128 billion for 50 operational vehicles for anti-smuggling task force.

    She said: “The second approval was for the purchase of 50 operational vehicles that are going to be deployed for anti-smuggling or anti-rice smuggling task force that is being put together, which Customs will be leading.

    “We felt that it is important that we don’t want Customs going to seize rice in the markets. Customs should actually stop rice coming in at border points and Customs indicated that they need additional vehicles, additional resources as well as more information driven measures that will be taken. But what was approved today was the purchase of 50 vehicles as part of these efforts. The contractor is Elizade and the value is N1.128 billion.”

    Asked to explain why Nigeria cannot fully fund its budget with the series of internally generated revenues declared by many government agencies, Mrs Adeosun said: “On the funding of the budget, Customs will report that they made a trillion, FIRS and so on, that is absolutely correct. But if you also follow those who cover the FAAC accounts, you will know that that money is shared every month among the three tiers of government. That is what makes up the FAAC. The FAAC is made up of Customs revenue, FIRS revenue and NNPC revenues.”

    Fashola said  his ministry presented a report to the Council on approvals it obtained from the FEC in the  last two years.

  • Why Fed Govt can’t concession Ajaokuta Steel plant, by Fayemi

    Why Fed Govt can’t concession Ajaokuta Steel plant, by Fayemi

    The Federal Government yesterday said legal encumbrances arising from the decision of the London Court of Arbitration over the ownership of Ajaokuta Steel Complex are still tying down its efforts to concession the plant.

    The Sole Administrator of the complex, Sumaila Abdul-Akaba, told the House of Representatives Joint Committee on Power, Steel Development and Metallurgy that a 2010 audit report showed that $1.2 billion was required to turn around the moribund steel plant.The amount, he said, included balance of external infrastructure.

    Minister of Solid Mineral Development Dr. Kayode Fayemi told the Senate and House of Representatives Joint Committee on Power, Steel Development and Metallurgy, that until all issues that emanated from the position of the London Court of Arbitration were addressed, it would be difficult to put up Ajaokuta Steel Complex for concession.

    Fayemi, who spoke at the 2018 budget defence of his ministry, noted that the ministry was working assiduously to bring life back to the moribund steel complex.

    The minister was asked when Ajaokuta Steel would be brought back to life.

    The Federal Government and Messrs Global Steel Holding Limited, an Indian firm, started negotiations for amicable resolution of the ownership of Ajaokuta Steel Complex in 2008.

    Abdul-Akaba gave breakdown of the amount as $513 million for rehabilitation, completion and commissioning while 4687 will be used for balance of external infrastructure.

    He appealed to the committee to ensure the total rehabilitation, completion and commissioning of the steel complex describing the plant as viable.

    The Sole Administrator also told the committee that by April 55 mw electricity plant installed in the complex would come on stream.

    He said there were 10,000 houses in the complex with about 4,000 completed.

    Abdul-Akaba assured the committee that machines installed in the complex are first class stressing that “all we need to do is to sort out legal issues surrounding Ajaokuta Steel to bring the plant to run.”

    He said the over $10 billion steel imported into the country annually could be save if Ajaokuta was brought on stream.

    On what the ministry is doing about lead poisoning especially in Zamfara State, Fayemi said they had constituted a team on lead poisoning jointly with the Ministry of Health.

    The minister also said they have blocked the use of mercury  which he said leads to lead poisoning.

    Fayemi said they are addressing the issue of institutional capacity and infrastructure.

    According to him, “For the first time states are also getting 13 per cent derivation due them from solid mineral exploited from their states.

    He said that they have constituted mines surveillance task team appointed by the Inspector General of Police.

    The minister said: “We also believe that artisan miners should be protected, to create employment in the area and enable the people to benefit.”

    It was gathered that the Senator Enyinnaya Abaribe-led committee has concluded arrangements to visit Ajaokuta Steel Complex for first hand information as well as to see how that the National Assembly can facilitate the rolling out of steel complex.

  • Fed Govt eyes N300b privatisation cash to fund budget

    The Federal Government will be raising N300 billion from privatisation of public enterprises to fund part of the N2 trillion deficit in the 2018 budget, Renaissance Capital (RenCap), an investment and research firm said yesterday.

    In an emailed report to investors, Sub-Saharan Africa Economist at RenCap and co-Author of the Fastest Billion Yvonne Mhango, said  Nigeria’s high ratio of debt service costs to revenue has spurred the Federal Government to reduce its borrowing.

    “ It plans to partly finance the 2018 budget deficit with new borrowings that will amount to N1.7 trillion half of which will be sourced domestically. This is in keeping with the Federal Government’s plan to lower debt servicing costs by increasing the share of foreign debt in public debt from 20 per cent to 40 per cent by 2019. Domestic debt service costs are 10 percentage points higher than for foreign debt. The remaining N300 billion of the deficit will be funded with privatisation proceeds,” she said.

    Mhango said she was positive about Nigeria in 2018 because of its stronger growth outlook, improved external position and prospects of lower interest rates. “Yes, we do expect the budget deficit to widen, but we are comfortable with the financing gap because it will still be lower than the International Monetary Fund (IMF)-recommended three per cent of Gross Domestic Product (GDP), and it does reflect an increase in capital expenditure spend, which is positive for growth.

    The downside risks to our outlook include a deterioration in the oil sector’s outlook and escalation of political instability in the run-up to the February 2019 elections,” she added.

    Continuing, she added: “As we expect headline inflation to have slowed to 14 per cent this quarter, as against 16 per cent year-on-year in September, we think the committee may start cutting the policy rate at the March 2018 meeting, by one percentage point. Additional arguments in favour of looser policy are inflation is not demand-driven”.

    In all, she said two percentage point rate cut is likely in 2018. “We believe this will complement the authorities’ efforts to reduce interest rates on treasury securities by raising the share of foreign debt in public debt. The risks to our view include a fall in oil prices and/or production, which would undermine the naira and compel the maintenance of a tight policy stance,” she said.

    Sheaadded that reforms targeted at improving tax administration and a planned excise tax also support an increase in revenue. This could be further bolstered by a Value Added Tax (VAT) reform and the removal of exemptions.

  • ‘Fed Govt owes NNPC N170.6b’

    ‘Fed Govt owes NNPC N170.6b’

    The Nigerian National Petroleum Corporation (NNPC) said yesterday that the government is owing it N170.6 billion in unpaid subsidy between January 2006 and December 2015.

    NNPC Group Managing Director Maikanti Baru told the Senate Investigative hearing on the N5 trillion subsidy payments from 2006 to 2016 that the figure was computed after the deduction of N4.950.80 trillion received as payments from the corporation’s N5.121.40 trillion approved subsidy claims within the period.

    The Chief Financial Officer of the NNPC, who was also on the team, Mr. Isiaka AbdulRazaq, traced the advent of the subsidy regime to October, 2003 when the NNPC was directed by the government to begin the purchase of domestic crude oil at international market price without a corresponding liberalisation of the regulated price of petroleum products.

    He explained that under the subsidy regime, the NNPC and other suppliers of refined petroleum products were entitled to file claims to the Petroleum Products Pricing Regulatory Agency (PPPRA).

    AbdulRasaq, however, noted that unlike other oil marketers, the NNPC did not receive cash payment for subsidy claims as its subsidy claims were deducted out of cost payment to the Federation Account after due certification by PPPRA.

    He said:‘’In summary, the NNPC submits that the amount of over N5.1 trillion was duly approved by PPPRA as subsidy claims for NNPC. Out of this sum, NNPC is still being owed N170.6 billion.’’

    The corporation asked the Senate Committee to assist in ensuring that the outstanding debt was settled to enable NNPC effectively achieve its obligation as the supplier of last resort to the downstream sector.

    Committee Chairman Senator Kabiru Marafa pledged to support stakeholders in the sector to ensure uninterrupted supply and distribution of petroleum products.

    Inaugurating the hearing, Senate President Bukola Saraki said the fuel subsidy scheme designed for the benefit of poor Nigerians had become a cash cow of a few who continued to milk the country dry in trillions of naira.

    Saraki said the fraudulent activities of the fuel subsidy cabal had continued to be perpetrated under a process insulated from public scrutiny.

    He noted that the Federal Government had failed to curb fraudulent practices associated with fuel subsidy.

    He said the Senate was working to unearth the subhead under which fuel subsidy had continued to be funded without budgetary provision.

    The hearing followed a resolution which mandated the Senate Committee on Petroleum (Downstream) to probe subsidy payment by the NNPC.

    Saraki said: “For years, our country has been plagued with the issue of fuel subsidy and, for too long, a scheme designed to reduce the burden on the poor has become the cash cow of a few who continue to milk the country dry in trillions under a process so opaque and insulated from public scrutiny called fuel subsidy.

    “You would recall that it was only after my motion on the 5th of March 2012, with the support of my colleagues in the 7thSenate and after a thorough review and investigation of the scheme we unearthed the monumental fraud bigger than our capital budget for a year going on in the name of fuel subsidy. Five years down the line, we are back on the same matter. This is not acceptable and we are determined to get to the bottom of it.

    “The mere fact that we are here again today to discuss this issue shows that those who benefit from this grand deception are not willing to let loose and government has not done what we need to do to nip this problem in the bud.”

    He spoke of how the Senate cut short the committee members’ end of year recess to investigate the resurfacing of queues at pump stations.

    Said Saraki: “The findings of the committee have brought to light the fact that our downstream oil and gas industry needs critical reforms. It has exposed among other things that in spite of the stoppage of the fuel subsidy regime, and the non-appropriation of funds for the scheme due to the fraud and maladministration going on in the scheme, that fuel subsidy payments continue to be paid from our commonwealth illegally and without appropriation by the National Assembly to a few quietly in order to dodge scrutiny and avoid exposure.

    “But this 8thSenate is here to expose every corruption in the system, irrespective of how highly placed those involved are and therefore the reason for this public hearing today.

    “This unconstitutional and illegal practice must be addressed and we are not going to rest until it is fully addressed.

    “It is the duty of this committee to get to the bottom of this issue and proffer long lasting solutions to this racketeering in the fuel market that leaves the Nigerian people poorer every year.”

    He raised other questions for the committee, saying: “What is the actual quantity of fuel the Nigerian market consumes? What are the underlining reasons why the market is struggling to operate without government intervention. In other words why the reoccurring scarcity? Third and equally crucial is the process and all those   involved in signing out unbudgeted funds outside the budget passed by the National Assembly.

    “This hearing today spotlights 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 years and is ready for the assent of Mr. President.

    “It is our belief that this piece of legislation, if implemented to the letter, has the potential of eliminating the present distortions in the system and sanitise the governance of the oil and gas industry of corruption and the rot in the system.

    “It will introduce the market competition that would bring efficiency to the system. It is our hope that this will set the tone for the necessary institutional reform required to clean this all-important industry of opacity and maladministration.”