House Suspends Consideration of N162bn Extra Fund for Fuel Subsidy

House of Representatives Speaker, Hon. Aminu Tambuwal has tactically stood down further consideration of the request by President Goodluck Jonathan for an additional N161,617,364,911 to fund the fuel subsidy scheme. He suspended debate on the Supplementary Appropriation Bill, through which the president is seeking legislative mandate for more cash for the subsidy scheme, following stiff opposition by some lawmakers.

Jonathan, had presented the Supplementary Appropriation Bill to the House and requested the lawmakers to give it an expedited passage. The bill, if passed, will bring the total fund the Federal Government will be earmarking for the fuel subsidy scheme this fiscal year to the N1 trillion mark. The National Assembly had earlier passed the provision of N888.1 billion contained in the 2012 budget for the payment of fuel subsidy.

Fuel Subsidy: Jonathan Seeks N162bn Supplementary Budget

President Jonathan, in a letter to the Senate, read by Senate President, David Mark, explained that after a forensic audit, Federal Government discovered that the provision for fuel subsidy in the 2012 budget was underestimated.

The letter read: “The distinguished Senate President will recall that as part of the 2012 budget framework, a provision of N888.1 billion was made for payment of fuel subsidy for the nation.

“I wish to intimate the distinguished Senate of the fact that following the forensic audit carried out, the provision for fuel subsidy in the 2012 budget was underestimated. As of now, the sum of N880,264,243,683:61 has been paid out, leaving a balance of N7,735,756,316. 39.

“In order to accommodate the outstanding arrears resulting from the forensic audit and remaining period of 2012, an additional N161,617, 364,911 over and above what was programmed in the 2012 framework is required.

“Given the need to maintain a steady flow of petroleum products, especially in the run up to the festive season, it is my hope that the distinguished senators will kindly accord this request their traditional expeditious consideration and approval.

“Accordingly, I hereby forward copies of the supplemental request for the additional payment of 2012.”

Subsidy Claims: Federal Government Pays N259bn

The Ministry of Finance has announced that the Federal Government has paid a total of N259, 339, 041, 657.85 as subsidy for 2012 and the arrears of 2011 claims.

The ministry, in a statement by the Senior Special Assistant to the Coordinating Minister for the Economy and Minister of Finance, Mr. Paul Nwabuikwu, said that contrary to the impression given by some marketers, the Federal Government, which has budgeted N888 billion for fuel subsidy, has continued to pay marketers whose claims had been duly verified.

A breakdown of the payments to the marketers, according to the ministry, shows that 24 companies submitted and were paid 43 different subsidy claims for 2012; totalling N78,899,342,509.65. Of the total amount of N78.9 billion paid so far under this category, the ministry said N34.6 billion was paid on August 22 following a thorough process of claims verification. The list also showed that 79 companies, including the 25 companies recommended for further criminal investigation by the Aig-Imoukhuede Committee, were paid arrears of 2011 claims in 2012, bringing the total payment to N259,339,041,657.85.

Among the oil marketers that the ministry listed as having received payment, are: Integrated Oil and Gas Limited; Masters Energy Oil and Gas Limited; Mobil Oil Nigeria Plc; MRS Oil and Gas Limited; NIPCO Plc; Oando Plc; and Total Nigeria Plc. They are some of the 24 companies that were paid a total of N78.9billion as their 2012 subsidy claims.

Capital Oil and Gas Limited; Ceoti Limited; Eterna Oil and Gas Plc; Forte Oil Plc; Heyden Petroleum Limited; Integrated Oil and Gas Limited; MRS Oil and Gas Company Limited; MRS Oil Nigeria Plc and Pinnacle Contractors Limited are among the 79 companies that were paid arrears of 2011 subsidy claims in 2012.

The statement did not however disclose if these companies were paid all their claims or not.