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ON THE GOVERNORS THREAT TO TAKE OVER PAYMENT OF FUEL SUSBSIDY FROM THE NNPC


Perhaps the immediate reason why the Governors, through the National Economic Council (NEC) declared their intention to take over the payment of fuel subsidy from the NNPC was informed by the outrageous claims of the NNPC of increases in fuel consumption and fuel subsidy, from 28million litres per day and N726m per day (N261.4bn per annum) in subsidy as at December 2017 to 50 million litres per day, daily subsidy of N774m and N1.4trillion per annum in fuel subsidy as at 6 April 2018.

Though the claims of the NNPC as to sudden rise in fuel subsidy consumption from 28 million litres per day and N261.4bn fuel subsidy per annum to 50 million litres per day and N1.4 trillion per annum within a period of about five months (December 2017 and April 2018) are suspect, the threat by the Governors to take a decision in June this year that may lead to the Governors assuming responsibility for fuel subsidy payment does not address the main problems/issues that ought to be addressed.
As an immediate measure, the Governors ought to be interested in establishing the truth about fuel consumption and fuel subsidy payment per day by ensuring that a forensic probe of the NNPC is carried out with a view to retrieving looted public funds in the name of fuel subsidy payments. I consider it unfortunate that the Governors, by their threats to take over payment of fuel subsidy seem to be determined to change the centre of looting from the NNPC zone to the Governors zone.
On a medium term basis, rather than the Governors thinking of taking over the function of paying fuel subsidy, they ought to be interested in making proposals to terminate reliance on fuel importation which is the basis for the fuel subsidy payment in the first place. The APC and PMB campaigned on a programme to end fuel importation and that, Nigeria as an oil producing country, ought to subsidise production rather than importation. What is required therefore are polices to move Nigeria along the path of ensuring domestic refining of crude oil and producing products for both domestic consumption and export.
Again, the threats by the Governors to take over the payment of fuel subsidy from the NNPC also shows how deep impunity has sunk in the veins of rulers of Nigeria. Payment of fuel subsidy by the NNPC arises on the basis of the statutory functions of the NNPC to manage the oil and gas sector, which include exploring, prospecting for, working, winning or otherwise acquiring, possessing and disposing of petroleum; refining, treating, processing and generally engaging in the handling of petroleum for the manufacture and production of petroleum products and its derivatives; purchasing and marketing petroleum, its products and by-products, and so on.

It would therefore appear that the Governors seem to be telling Nigerians that they have nothing to do as Governors and they now want to take over the management of the NNPC. In that wise, my advice to the Governors is that they should first resign their positions as Governors and then apply to be employed in the NNPC.

It should be appreciated that the Governors issued their threats to take over the payment of fuel subsidy from the NNPC in the name of the National Economic Council (NEC),, established by section 153(1)(h) of the Constitution of the Federal Republic of Nigeria, 1999. The powers of the NEC are as defined under The Third Schedule, Part 1, Paragraph 19 of the Constitution, which delimits the power of the NEC to only one -advising the President on particular measures to take for planning and coordination of economic programmes of the various Governments of the Federation.  Until the Act establishing the NNPC and the Constitution are amended through Acts of the National Assembly, the Governors cannot legally and constitutionally carry out the threats to take over payment of fuel subsidy from the NNPC. If they succeed in actualizing their threats, it would only reflect continuation of a regime of impunity.
However, what the threat of the Governors has thrown up once again is addressing the challenge of how to manage the oil resource of Nigeria in the welfare interests of ordinary people who constitute the vast majority. So far, the masses have not benefitted from the oil wealth. The masses, particularly the masses in the oil producing region of Nigeria have had to bear the negative consequences of oil production without enjoying any benefits. Democratizing the management of the oil resource by involving elected representatives of those who work in the industry and communities, as well as relevant professional bodies is the ultimate solution to the unending scams in the oil industry.
Femi Aborisade
27th May 2018.


Daily Independent Link : https://independent.ng/x-raying-governors-threat-to-take-over-subsidy-payment/amp/

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