Senate to probe petrol subsidy payments, queries N9.3trn spent in 30 months

The senate has resolved to probe expenses incurred by the federal government in 30 months, under the petrol subsidy regime.  

The resolution by the upper legislative chamber on Tuesday, during the plenary, was a sequel to a motion moved by Chiwuba Ndubueze, a lawmaker representing Imo-north.

Moving the motion, Ndubueze said, while President Bola Tinubu’s decision to withdraw the petrol subsidy in May was commendable, the regime must be investigated.

The motion was titled “Need to investigate the controversial huge expenditure on premium motor spirit (PMS) under the subsidy/recovery regime by the Nigerian National Petroleum Company Limited (NNPC)”.

Ndubueze said in 10 years — 2006 to 2015 — the federal government, through NNPC Ltd, claimed N170 billion as under-recovery.

He added that the national oil company also expended N843.121 billion on under-recovery between January 2018 and January 2019.

“Very worrisome of the expenses made on subsidy/ under recovery by NNPCL during the period under review, particularly from January 2021 to June 2023, was N9.3trillion claimed to have been spent,” Ndubueze said.

“The money as shown by available records, shows that in 2021, N1.42 trillion was expended, in 2022, N4.3 trillion and in the first six months of 2023, N3.6 trillion, totalling, N9.3 trillion.” 

The senate resolved that its standing committees on petroleum (downstream), petroleum (upstream), and finance, when constituted, would carry out a holistic investigation on all controversies surrounding subsidy and under the recovery regime.

During the debate, the upper chamber also sought a living wage for workers as a way of cushioning the effects of petrol subsidy removal. 

The lawmakers debated the establishment of three functional refineries for local production and distribution of refined oil.

They said the development would help to bring down the pump price from N540 per litre to between N300 to N350 per litre.