The House of Representatives on Wednesday invited Ibe Kachikwu, Minister of State for Petroleum Resources over the discrepancies in the price of Premium Motor Spirit (PMS) sold to some oil marketers.
Documents available to the Ad-hoc Committee investigating the review of pump price of Premium Motor Spirit (PMS), chaired by Raphael Nnana-Igbokwe, showed that Petroleum Pricing Marketing Company (PPMC) sold PMS to some oil marketers at N117.28 per litre below the approved price of N133.96 per litre.
Similarly, Godwin Emefiele, Governor of Central Bank of Nigeria (CBN) is also expected to provide relevant documents on the forex allocation given to the 48 oil marketers for importation of PMS between October and December, 2017.
Other stakeholders invited by the Ad-hoc Committee are: Ebok Ekwe Ibas, Chief of Naval Staff; Hameed Alli, Comptroller General of Nigeria Customs Service; Abdulkadir Umar, Executive Secretary of Petroleum Product Pricing Regulatory Agency (PPPRA); DPR Director as well as General Manager Crude & Marketing Department.
Peter Tokan, PPPRA’s General Manager (Finance) and Ishaku Abner who confirmed the differential in the price of PMS, denied involvement in the scam.
Nnana-Igbokwe who frowned at the under-dealing within the system, argued that the “N171 per litre landing cost of PMS presented by the Mimister at the last appearance is hereby put on further inquiry, until he provides supportive documents.”
To this end, he directed the Minister to provide data and template for the PMS price and records of those identified for diverting petroleum products during the yuletide season within 72 hours.”
According to him, some of the oil marketers who interfaced with the Committee did not import PMS throughout the last quarter of 2017, just as PPPRA’s record showed that none of the oil marketers imported PMS within the period under review.
The Ad-hoc Committee also request for price template on 18% domestic refined crude oil as well as the imported, noting that the Corporation does not incur additional cost on locally refined PMS as in the case of imported products.
The lawmakers who queried some of the transactions carried out between 2016 and 2017, placed on further inquiry the activities of 18 marketers out of the 48 marketers who secured approval for importation of PMS but denied to have imported PMS during the Q4 2017.
To this end, the Ad-hoc Committee urged CBN Governor to provide list of all the oil marketers who access forex for importation of PMS between October and December, 2017.
Also at plenary session, the House after robust debate on the motion on ‘urgent need to investigate the fuel subsidy payment by NNPC, sponsored by Karimi Sunday, resolved to probe the reintroduction of subsidy regime without National Assembly’s approval.
Some of the lawmakers who spoke in favour of the motion include Pally Iriase, Deputy Majority Whip; Ahmed Pategi, Joseph Akinlaja, Hassan Saleh, Mohammed Munguno, Aminu Shehu Shagari, Johnson Agbonayima, frowned at the failure of the Executive to address the issues till date.
To this end, the House resolved to invite Maikanti Baru, NNPC Group Managing Director amd PPPRA Executive Secretary, to appear before the joint Committee on Finance and Petroleum (Downstream) over the payment of subsidy on Premium Motor Spirit (PMS) without approval from the National Assembly.
The Minister and the NNPC boss are expected to appear before the House to explain where they got authorisation to expend over N300 billion on subsidy payment between January and December, 2017.
Adopting a motion moved by Sunday Karimi under Matters of urgent public importance, the House requested the Federal Executive Council (FEC) to make provision for subsidy payment in the 2018 Appropriation bill, if it is interested in continuing with the payment of subsidy on PMS.
In his lead debate, Karimi said between January to December the Federal Government through the NNPC claimed to have spent over N300 billion on payment of subsidy for PMS, when there was no provision for subsidy payment in the 2017 Appropriation Act.
He noted that the payment, which was done without the approval of the parliament, was a breach of the constitution.
According to him, section 80(4) of the 1999 constitution as amended stipulates that no money shall be withdrawn from the Consolidated Revenue Fund or any other public fund of the federation, without the approval of the National Assembly.
Consequently, Karimi stated that the payment of subsidy last year by the NNPC without the consent of the federal legislature, no matter intention, was illegal and unconstitutional.
While urging the House to investigate the matter, the lawmaker added “It is an impeachable offence. We cannot keep quiet.The executive cannot decide which part of the consitution to obey and which to ignore.”
Contributing to the motion, Ahmed Pategi (APC-Kwara) observed that the Presidency and the NNPC had agreed to keep on importing fuel to make it readily available in the country, no matter what.
However, he said no matter the motive for the subsidy payment, the House should investigate the issue, as the NNPC acted without recourse to parliament.
“In this case, it is the NNPC that is importing (fuel). Which means the NNPC is paying itself subsidy,” Pategi said.
