News

Reps To Conduct Comprehensive Audit Of Petrol Subsidy Regime

Published

1 year ago

Nov 4, 2023.

EKO HOT BLOG reports that Chairman, House of Representatives Committee on Petroleum Resources (Downstream), Ikeagwuonu Ugochinyere, has vowed on behalf of the committee to conduct a comprehensive audit of the petrol subsidy regime.

Speaking at the inaugural meeting of the committee in Abuja on Friday, Ugochinyere said the implementation of the Petroleum Industry Act would also be reviewed comprehensively.

EDITOR’S PICKS

According to him, the committee will legislate on energy security, professionalism in the petroleum sector, economic transformation, accountability, institutional reforms, and revenue recovery and generation, with a specific goal of helping the Federal Government to make $20bn revenue from the sector.

He said, “It is very important that we make this known to Nigerians that we feel the pains they are going through due to the removal of the subsidy regime. That regime had to go because it was corrupt and that is why the downstream committee of the House on petroleum resources will do a comprehensive audit of the PMS subsidy regime.

“We will probe the beneficiaries of the payment, render accounts on all loan transactions, the pre-export financing arrangement, and other loan arrangements. Also, other loan arrangements in exchange for crude will be extensively reviewed and investigated.

subsidy regime

“The direct sales, direct purchase, using the crude to bring in the PMS and other value chains associated with them will also be reviewed. This committee will be working closely with our brother committees in the upstream, mainstream, gas, Petroleum Training Fund, and other petroleum-related committees to help us achieve our set objectives.”
The lawmaker further said the implementation of the PIA, which had become a major concern to key stakeholders, would be reviewed by the committee.“What was done before the PIA? What are they doing after the PIA? The assets that used to be national assets before the coming into effect of the PIA, where are they? Who is with them?

“All these the committee will look into to ensure that the intention of the PIA is achieved. One of those intentions is to ensure that there is energy security and competition in the downstream sector,” he said.

“Today, the Nigerian National Petroleum Company Limited is the main importer of PMS. That is not the main intention of the PIA. The PIA had envisaged a situation where numerous downstream operators would have been involved in the importation of PMS. That we would also look into

“We intend to use our legislative powers to help solve our nation’s energy problem, create healthy competition in the industry as envisaged by the PIA, create job opportunities, and stabilise the forex market because if today the downstream sector is functioning very effectively, there would be no need for us to be running looking for forex, which is now creating instability in the market,” he added.

Click to watch our video of the week