Report has it that members of the Senate are on verge to investigate oil subsidy under the recovery administration by the federal government until May 29 , 2023, when the it was eventually removed. It was gathered that a swipe at N9.3 trillion was recovered on the subsidy regime by the federal government from January 2021 to June 2023.
The senate has also called for the establishment of three functional refineries for local production and distribution of refined petrol, adding that a review to be made to reduce the petrol price from N540 per litre to between N300 and N350.
It was also reveled that upon setting the Committees on Petroleum ( Downstream ) Petroleum ( Upstream ) and Finance, there will be a thorough investigation on issues pertaining to subsidy and under recovery regime .
The senate pleaded with the Nigerian National Petroleum Company Limited, NNPCL, to collaborate with some major international oil companies, IOCs, in Nigeria, in order to establish about at least three refineries. Resolutions of the Senate yesterday were sequel to a motion, titled, “Need to Investigate the controversial Huge Expenditure on Premium Motor Spirit ( PMS) under the subsidy / under recovery regime by the Nigerian National Petroleum Company Limited, NNPCL.”
The motion was sponsored by Senator Chiwuba Ndubueze, APC, Imo North.
Senator Ndubueze noted in his presentation that “while within 10 years ( 2006 – 2015), the Federal Government, through NNPCL, claimed N170billion as under recovery, it expended a whopping N843.121billion on under recovery between January 2018 and January 2019.”
He noted that, ” Very worrisome of the expenses made on subsidy/under recovery by NNPCL during period under review , particularly from January 2021 to June 2023, was N9.3trillion claimed to have been spent.
“The money as shown by available records, indicates that in 2021, N1.42trillion was expended; in 2022, N4.3trillion; and in the first six months of 2023, N3.6trillion, totaling , N9.3trillion “