The House of Representatives on Wednesday resolved to set up an ad-hoc committee to investigate the petroleum products subsidy regime from 2017 to 2021.
The resolution followed a motion by Honourable Sergius Ogun who stated that component costs in the petroleum products subsidy value chain claimed by the Nigerian National Petroleum Corporation (NNPC) is highly over-bloated while the transfer pump price per litre, used by the NNPC in relation to Petroleum Pipeline Marketing Company (PPMC), is underquoted.
The lawmaker described this as fraudulent while also expressing worry that the subsidy regime has been used by the NNPC and other critical stakeholders to subvert the nation’s crude oil revenue to the tune of over $10 billion.
The committee is to report back to the House within eight weeks for further legislative action.
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Wednesday’s move by the lawmaker came on the same day that the Chief Executive Officer (CEO) Mele Kyari ruled out the possibility of a subsidy for diesel.
He made the comments while appearing before the House of Representatives Committee on Downstream, alongside the CEO of Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, among others.
“In our country today, we do not produce AGO and we regret that our refineries are not working,” he said. “Are we doing anything about it? Yes. I have heard the honourable members lamenting; yes, they (the refineries) are not working.
“This is the truth. I don’t want to bore you with why they are not working, but they are not working; I admit they are not working but we regret it. I will invite this committee at your convenience to join us to see how much work we have done to get them back to work, but they will not come back tomorrow.
“They will not! You cannot start it tomorrow. We regret this; we regret this situation, and we are doing everything possible. As a matter of fact, we have decided to do a quick fix for the Warri refinery. The reason is very simple: we don’t even want to go the long route of doing comprehensive turnaround maintenance because we are concerned.”