Nigeria Senate slashes subsidy on kerosene, petrol

Nigerians queuing for kerosene

The Senate on Wednesday, slashed the allocation for petrol and kerosene subsidies presented by the Ministry of Finance in the Medium Term Expenditure Framework for 2015 – 2017.

The upper chamber, while approving the MTEF, slashed petrol subsidy from N200 billion to N100 billion.

It also reduced the subsidy allocated to kerosene from N91.08 billion to N45.52 billion. The Kerosene subsidy is the first proposed in the last few years, after criticisms that the government spends hundreds of billions on kerosene subsidy annually without any appropriation.

The Chairman of the Joint Committee on Finance and National Planning; Economic Affairs and Poverty Alleviation, Ahmed Makarfi, said the reduction was due to the fall in oil prices at the international market.

“The relevant committees of the National Assembly should through oversight, ensure the full implementation of the proposed kerosene subsidy and the availability and of the product,” he said.

Mr. Makarfi also said the reduction in the subsidy allocations to petrol reflected government’s commitment to transparency and accountability in the entire oil and gas sector.

In his remarks, the Senate President, David Mark, said there was need for a budget cut across the three arms of government in view of the current economic reality.

Mr. Mark said the government must continue with its reform policy in order to promote the growth of the non-oil sector. He expressed delight on the expeditious passage of the MTEF, adding that “this is the kind of cooperation required to build our nation.”

Also, the Deputy President of Senate, Ike Ekweremadu, said the country must learn from wasteful spending of the past, adding “we must engage in prudent spending in order to build our foreign reserve.”

He said that many countries had survived with fewer resources, adding that “Nigeria must look away from relying on oil and spending on oil wistfully.’’
(NAN)


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  • BlackieUmukoro

    But the N150 billion budget allocation for the national assembly remained unslashed. When it comes to cheating Nigerians, politicians of all shades does so in one accord. At that moment PDP and APC collapse into one cheating gang. Ole

  • New Nigerian

    The subsidy scam continues.

    Back of the envelope calculations puts it at about $200billion that have been stolen, shared or misappropriated in the past 4 years – through grand theft of oil, unmerited sale of oil, unauthorized subsidy payments, depletion of natural reserve, un-collected revenues through loopholes.

    One Aspect. President Jonathan have personally supervised the grand theft, through two contracts financed with tax payers money, since January 2012 (possibly fall of 2011) of 400,000 barrels of oil per day by those he hand-picked to safeguard the supply lines against theft. According to Soludo: “First, you (Finance Minister, Okonjo-Iweala) admit that ‘oil theft’ has reduced oil output from the average 2.3 – 2.4 million barrels per day to 1.95 mpd (meaning that at least 350,000 to 450,000 barrels per day are being ‘stolen’). On the average of 400,000 per day and the oil prices over the past four years, it comes to about $60bn ‘stolen’ in just four years.

    – This is done through two 2 contracts that Jonathan signed to rebel leaders from his tribe.
    These are the 2 contracts by the Jonathan administration that is a major feed to the monster bedevilling Nigeria and turning it into a failed state, and a personal estate of King Jonathan, it was fall 2011 & 2012 time frame – widely reported by Wall Street Journal and major newspapers in Nigeria – just google it – I like the composition in the piece titled, Help, This Nigerian State Is Failing By Ayobami Oyalowo:

    ”In August, the Wall Street Journal (WSJ) broke some disturbing news about Nigeria. It was reported that some ex-militants in the Niger Delta had been paid about N6.32billion within the past one year by the Nigerian National Petroleum Corporation (NNPC). Yes, for the ‘noble’ service of providing security against vandals for the Corporation’s oil pipeline network. Imagine! The breakdown, as outlined by WSJ, is this:
    Chief Government Ekpumopolo (alias Tompolo), Alhaji Mujahid Asari-Dokubo, ‘General’ Ebikabowei Victor Ben (Boyloaf) and ‘General’ Ateke Tom were respectively paid N5.1 billion, N1.44 billion, N608 million and N608 million yearly by the state-owned NNPC, as ‘protection money’ to guard the pipelines they once attacked.
    As if that was not enough an insult on the collective intelligence of Nigerians, earlier in the year the Federal Government awarded a contract worth $103.4million (over N15billion) to the Global West Vessel Specialist Limited (GWVSL) – a firm widely believed to be owned by Tompolo to supply 20 vessels for the use of the nation’s military authorities to secure the waterways. Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Ziadeke Akpobolokemi, had last year sent a memo titled, “Award of Contract for the Strategic Concessioning Partnership with NIMASA to Provide Platforms for Tracking Ships and Cargoes, Enforce Regulatory Compliance and Surveillance Of The Entire Nigerian Maritime Domain,” to President Goodluck Jonathan.
    In considering the memo, President Goodluck Jonathan and Akpobolokemi chose GWVSL as the preferred company for the 10-year concession agreement, renewable for two terms of five years each. Jonathan, in a memo dated 9th November, 2011, with reference number PRES/99/MT/61, approved Akpobolokemi’s memo, which the Federal Executive Council rubber-stamped on 5th January, 2012. According to Akpobolokemi, GWVSL “will provide platforms for effective policing of Nigeria’s maritime domain and ensure compliance with international maritime conventions on vessels and ships voyaging the country’s waters”. NIMASA maintains that the concessionaire would help the Federal Government to enforce the sabotage law and collect levies on its behalf. This, in a country that still maintains a statutory Naval force, and without a track record for GWVSL?
    From the above, the current occupant of the presidential villa showed where his loyalty lies…rather than train the military, he equipped criminals and vandals who had taken up arms against the state. No wonder so much arms and ammunition have found their way into Nigeria and our country has now become one gigantic human abattoir where someone is killed on an average of an hour, daily. Between January to May 2014 it has been estimated that over 1,500 people have been mindlessly cut down by terrorists and blood thirsty killers.

    • saint

      What an excellent piece.

  • Guguru

    The Senate are all deceptive !diots. The current budget for fuel subsidy is about N972 billion. So, what are they slashing in some crazy medium term framework that is just N100 billion? Why not slash the current fuel subsidy by about N400 billion so that we know they are really serious about being fiscally disciplined? What about the Nigerian agencies that generate revenue which is never remitted into the federation account? What have they done about these?

  • Eze1

    Whether slashed or not slashed, this Govt will still spend outside the budget on non-existent subsidy paid to their cronies