SENATE RAISES ALARM OVER HUGE SUBSIDY PAYMENT AS N11trn IS SPENT IN 6 YEARS

The Senate has raised the alarm over the payment of N11 trillion oil subsidy in six years, warning that further payment could kill the economy.

The Senate has, therefore, asked the Federal Government to stop the payment of oil subsidy, which it described as a drain on the economy.

The lawmakers also called for the building of new refineries to finally put an end to fuel subsidy payment in the country.

Resolutions of the Senate followed the consideration of a report of the Senator Kabiru Marafa-led Committee on Petroleum, Downstream on Promissory Note Programme and a Bond Issuance to Settle Inherited Local Debts and Contractual Obligations to Petroleum Marketers.

In his presentation, Marafa said the committee observed that there were differences in submissions made by the Federal Ministry of Finance, Petroleum Products Pricing Regulatory Agency, PPPRA, and oil marketers.

He said all the subsidy arrears’ claims were based on three inter-related elements, namely subsidy, forex differentials and bank interests on unpaid claims.

Meanwhile, the Senate has approved the payment of N129 billion as subsidy arrear claims to 67 petroleum marketers.

The approval followed the adoption of the report of Senator Marafa-led Committee on Petroleum Downstream.

The Senate has adjourned till June 6 for its valedictory session.

SOURCE: VANGUARD