20 September 2011
.AS work resumes at the Senate after its annual vacation, one of its members, the Senator representing Kwara Central Senatorial District, Dr. Bukola Saraki has placed a motion before the chamber asking the Senate to investigate the management of the fuel subsidy.
In the motion he notes that the Federal Government of Nigeria operates a fuel subsidy scheme with the policy purpose of making petroleum products available and cushion the effect of the true market prices of petroleum products on the populace.
The motion by the immediate past governor of
is now generating heated debate on account of its timeliness and importance, it recognizes that the fuel subsidy scheme is a long-standing government palliative action to help the Nigerian masses and therefore the motion does not aim by any guise to remove the fuel subsidy. Kwara State
However he says he is propelled by the need to make the scheme more transparent, corruption-free and competitive within an appropriate legislative framework and in compliance with the Appropriation Act. “The motion notes that in furtherance to the implementation of the fuel subsidy, an amount is budgeted in the Appropriation Act. In 2011 the sum of N240bn (N20bn Monthly) was allocated.
“It further notes that of the N20bn monthly allocated, N11.2bn was allocated for Domestic Fuel Subsidy (NNPC) and N8.8bn for Domestic Fuel Subsidy (Market) as stated in the Appropriation Act 2011.
“It observes that although N20bn was set aside for subsidy on a monthly basis in the Appropriation Act 2011, in August 2011 the total figure expended was N165bn of which NNPC was N88bn and Independent Marketers was N77.7bn.
And observes that although N240bn was budgeted for the entire year, so far as at end of August 2011 N931bn has been spent. This is a variance of N771bn or 700% above budget.”