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Oil Subsidy’s Many Contradictions

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The debate on the subsidy regime thrown up by the removal of fuel subsidy by the Federal Government and the resultant nation-wide strike and protests  by organized labour and civil society groups is far from being over, as the issue is still on the front burner of national discourse.

At the National Assembly, for instance, the House of Representatives’ Ad-hoc committee on the subsidy regime concluded its indebt probe a fortnight ago and is currently putting its report together, while the Senate Committee on Petroleum (Down stream) resumed its suspended public hearing on the sector last week. At both the House probe and Senate public hearing, the nation was treated to startling revelations that shocked not a few.

As the nation awaits the separate reports of both Houses of the National Assembly, The Tide took up issues arising from the probe with the sole sponsor of  the motion on subsidy in the House, Hon. Kingsley Ogundu Chinda. A frontline member of the 7th National Assembly (Vice Chairman, House Committee on Customs and Excise) Hon.  Chinda told The Tide  that he sees contradictions in the handling of the fuel subsidy regime in the country and the entire imbroglio should be tackled frontally, and he tasked the  government on this.

“So far, investigation by the House ad-hoc committee has been concluded and startling facts were revealed; the report of the committee will be made and forwarded to the Executive arm for action. I hope and pray that the Executive arm, in the interest of the nation, will act on the report expeditiously and not allowed the report rot on  the shelve like many other reports,” he said.

The Obio/Akpor Federal  Constituency (Rivers State) legislator said it was good that President Jonathan in  fulfillment of  his promise of creating employment with the money saved from subsidy, launched the government’s employment programme last week by inaugurating the implementation committee.

He acknowledged that the Dr. Christopher Kolade-led committee is empowered to manage proceeds from the subsidy, but added, “Let me say clearly that there are several contradictions in the system. Nigeria is still borrowing as we speak and appears to be poised to continue borrowing .

“We were informed that the country borrowed to fund fuel subsidy in 2011. If we stop subsidy payment, what we would have achieved is that we would  have stopped borrowing. The issue of reinvesting the fund is illogical and contradictory. There are  places in this country where fuel sells for N500 per litre as we speak. One of such places is Mr. President’s home state (Bayelsa)”, he lamented, adding persuasively, “something needs to be done.

“Government needs to gain citizens’ confidence and get them to buy into government policies. This can only be achieved if government is transparent and operates strictly by laid down rules that are clearly predictable.”   He continued: “As I stated earlier at the heat of the subsidy removal, ‘for systems of administration or policies of government, let fools contend; what is best administered is best in any society’. What this means is that: It’s not the removal of subsidy that is the crux of the matter but it’s effective administration; it is not the policy but the administration of the policy that matters. That is why a policy can work in Ghana and may not work in Nigeria.

“Again, when national issues are discussed, people take regional and ethnic positions and abandon the nation; even among very highly placed officers, you see more of Ikwerre, Ibo, Yoruba, Hausa or Ijaw opinion or agenda, than the Nigerian project.  All I will say is that we do not have a true Nigerian nation. What ww have is an amalgam of various nationalities. I pray that we begin to produce true Nigerians with Nigerian spirit, Nigerian orientation and Nigerian interest to get us out of this quagmire”.

The Tide asked Chinda of his input into the security puzzle that has bedeviled the nation and he drew The Tide’s attention to his recent motion on the prevailing security situation. Titled: ‘Need to urgently investigate and check the rising security challenges in the country’, the motion  tasked the Federal Government to come up with a clear programme, solution, and/or policy on how to tackle the problem and not just to beg the problem or adopt a fire brigade measure.

Drawing example from late President Umaru Musa Yar’Adua’s amnesty programme, which was instituted to quell the security challenges the nation was facing at the time from Niger Delta militants, Chinda said, “Now, I’m yet to see a clear programme on how to tackle the upheaval, We must come up with a clear programme on how to tackle the security challenges”.

The just-concluded 2012 budget defence of federal MDA’s at the National Assembly is one issue that cannot escape  mention, especially since some committees embarked on a tour of some of these MDA’s before approving their budgets.

The Tide asked Hon Chinda, who led his Customs and Excise committee along with the chairman, Hon Sabo Nakudu on a tour of the Customs, their areas of operation, as part of their oversight function, on the committee’s discovery.

According to him, “We discovered during our oversight visit that our ports are heavily under-utilized, They are colossal wastes!” To this end, he has a motion before the House, mandating government to ‘put our ports to full use’.

There is also the issue of failed contract  in the sector and already the erudite legislator has come up with a motion on that, titled : “ Failed contract for dredging of the Calabar channel and the Port Harcourt ports”.

He said there was need to re-award the contracts and put the channel and ports on sound footing so that they can generate more revenue to the Federal Government and create room for wealth creation in the region.”

He continued: “There is also need to connect Onne port to the National grid. It is disturbing that Onne port is not connected to the national grid till now; this is a misnomer. We also observed that fixed scanners were supposed to be installed at Onne and Port Harcourt ports but they are not there. Work has just started to fix the scanners and this is the last year of the five (%) year contract with SGS.

“Nigerians lost the opportunity of using the scanners for the duration of the 5 years contract and SGS is not likely to be there after this year to properly conclude the installation and testing of the scanners unless their contract is renewed. These anomalies should be corrected. I have motions before the House to properly empower the Committee to effectively deal with the situation”.

In addition, “We discovered that the employment pattern in the Nigeria Customs appears to be lop-sided and not in compliance with the constitutional provision for geographical spread. The Committee on Customs is recently working on that and we can say that we have received the assurance of the management of Nigerian Customs to correct the anomaly which has existed over the years.

“Also we discovered that state governments, particularly border states, do not pay attention to Nigeria Customs as one of the security agencies in the country. Nigerian Customs is supposed to protect borders and ensure that illegal goods, fire arms and explosives are not moved into the country. What it means is that they’ll be faced with the challenge of fighting criminals and high-class smugglers.

They, therefore, need proper equipment  and they ought to be knitted fully to face the challenges,” he had expressing regret that while State Governments support the Police and other security agencies by providing operational vehicles and allowances, this goodwill is not extended to the Nigeria Custom.”

He that they observed in the course of the oversight function the commendable changes going on in the Nigerian Customs noting that the operations of custom are being digitalised making room for easy monitoring of the Customs and increases transparency, particularly in revenue collection in form of Excise duties, which accounts for the over 100% increase in revenue generated in 2011.

“There’s also concerted efforts to ensure speedy clearance of goods at the wharf. In this light, I’ll urge Nigerians to co-operate with the Agency and also report all cases of extortion or inordinate delay by the custom to the appropriate quarters, either the Controller – General’s office or the House Committee on Customs and  Excise”, he said.

 

Justus Awaji, Abuja

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Atiku Names Kenneth Okonkwo As Spokesperson

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The African Democratic Congress (ADC) presidential hopeful for 2027, Alhaji Atiku Abubakar, has named actor and politician, Mr Kenneth Okonkwo, as his spokesperson.

Mr Okonkwo made the announcement on his X (formerly Twitter) account on yesterday, expressing gratitude for what he called Alhaji Abubakar’s show of faith in him.

“I give God all the glory for being appointed by His Excellency Atiku Abubakar as his spokesperson. I thank His Excellency for the immense confidence reposed in me,” Mr Okonkwo said.

The politician credited Alhaji Abubakar with championing dialogue over conflict within party ranks.

He noted that the former vice president favours conversation and compromise when party associates raise genuine worries, rather than dismissing their concerns.

“Rather than take offence at associates for expressing genuine reservations about any action taken, His Excellency always opts for dialogue and compromise that engender solutions to problems,” Mr Okonkwo stated.

According to him, recent talks with Alhaji Abubakar and other ADC leaders tackled worries about South-East political representation within the limits of the Electoral Act, 2026, and the current political climate. He said the discussions produced guarantees for the region’s interests despite existing constraints.

Mr Okonkwo also acknowledged the work of Dr. Kashim Imam; former ADC National Chairman, Ralphs Nwosu; Ekene Onwuka, Alhaji Abubakar’s Senior Special Assistant on Special Duties, in preparing the party for next year’s elections. He thanked his loved ones and supporters for their support and prayers.

“I still covet your prayers for wisdom, courage, provision and protection needed to carry out this challenging responsibility, which will usher in a glorious and great Nigeria,” he added.

The appointment arrives weeks after Mr Okonkwo publicly attacked the ADC’s pick for running mate in 2027. He’d warned that choosing a vice-presidential candidate from the South-South would worsen what he sees as political neglect of the South-East, a region without a president or vice president since 1999.

Despite Mr Okonkwo’s objections, the ADC later announced former Rivers State Governor and ex-Minister of Transportation, Mr Rotimi Amaechi, as Alhaji Abubakar’s running mate following the ex-vice president’s clinching of the party’s presidential nomination.

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Senate Defends Passage Of State Police Bill

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The Senate has defended the passage of the Constitution of the Federal Republic of Nigeria (Alteration) (State Police) Bill, 2026, saying the proposed creation of state police is driven by national consensus and the country’s security needs rather than political considerations.

The Red Chamber passed the bill last Wednesday after more than two-thirds of senators voted in support.

In a statement issued yesterday by the Directorate of Media and Public Affairs, Office of the Senate Leader, Senator Opeyemi Bamidele described the bill as “a child of necessity and not of political expediency as well as a product of national consensus and not of cynicism.”

 

The senate leader said the proposal to establish state police was a matter of urgent public importance that could not be delayed because of political interests, given the country’s security challenges.

He explained that the proposal did not originate recently but emerged from memoranda submitted to the Senate Ad-hoc Committee on the Review of the 1999 Constitution.

According to him, the proposal underwent extensive consultations and rigorous scrutiny because of its sensitive nature.

Bamidele said the National Assembly consulted widely with the Executive, the Nigeria Governors’ Forum, the Conference of Speakers of State Legislatures of Nigeria, the leadership of the Nigeria Police and other stakeholders before passing the bill.

He added that during the public hearings conducted across the six geopolitical zones in July 2025, participants overwhelmingly supported the creation of state police.

“At each level of our consultation, nearly all stakeholders embraced the State Police Bill in the light of stark realities we are facing today,” he said.

The Senate leader noted that recommendations from the Nigeria Police contributed to the bill, particularly on accountability and oversight mechanisms aimed at preventing abuse of state police by political actors.

According to him, the police’s support for the proposal underscores its national significance in tackling insecurity at the state and local levels.

Bamidele also said the bill received broad bipartisan backing in both chambers of the National Assembly.

“Even though the APC is the majority, there are members of opposition parties — PDP, ADC, NDC and Labour Party — that exercised their discretion in favour of the Bill, mainly in the national interest and not on parochial basis.

“In the Senate, for instance, 84 out of 109 members voted clause by clause in support of the Bill. This accounted for 77.06 per cent approval at the Senate alone,” he said.

He argued that national security should transcend political affiliations, saying political actors in other countries often set aside partisan interests to support initiatives that strengthen security.

Bamidele called on opposition parties to contribute constructive ideas that would promote peace and stability, adding that they have a responsibility to offer alternatives that would strengthen the country.

“Even when they disagree on some grounds, they are under obligations to provide credible and useful ideas that can make our nation better and greater. Unfortunately, they have not passed this critical test of opposition democracy,” he said.

 

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Probe N6.3bn Constituency Funds Or Face Legal Action, SERAP Tells Akpabio, Abbas

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The Socio-Economic Rights and Accountability Project (SERAP) has called on Senate President, Godswill Akpabio, and Speaker of the House of Representatives, Tajudeen Abbas, to refer allegations of the diversion or non-accounting of over ?6.3 billion in constituency project funds to anti-corruption agencies for investigation and possible prosecution.

 

The group also urged the National Assembly leadership to ensure that anyone found culpable is prosecuted where sufficient admissible evidence exists, while all diverted or unaccounted public funds are recovered and paid into the treasury.

 

In a letter dated June 27, 2026, and signed by its Deputy Director, Kolawole Oluwadare, SERAP said the allegations were contained in the Auditor-General of the Federation’s 2022 Annual Report, published on September 9, 2025.

 

The organisation disclosed this in a statement signed and released by Oluwadare, yesterday.

 

SERAP also asked Akpabio and Abbas to disclose the identities of contractors and companies, including their shareholders and beneficial owners, that allegedly received constituency project funds but failed to execute the projects.

 

It gave the National Assembly seven days to act on its recommendations, warning that it would institute legal proceedings should the legislature fail to respond.

 

“We would be grateful if the recommended measures are taken within seven days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall take all appropriate legal actions to compel you and the National Assembly to comply with our request in the public interest,” the letter stated.

 

It said, “The allegations involve several federal ministries, departments and agencies, including the Environmental Health Registration Council of Nigeria (EHORECON); the Federal College of Animal Health and Production Technology, Volm; the Federal Polytechnic, Udana; the National Agency for the Prohibition of Trafficking in Persons (NAPTIP); and the National Institute of Legislative and Democratic Studies (NILDS).

 

“The Auditor-General identified numerous cases of payments into private bank accounts, contracts awarded without due process, payments for contracts not executed or services not rendered, undocumented expenditures, inflated contracts, procurement irregularities and failures to account for public funds, recommending in each case that the funds be recovered and remitted to the treasury.

 

“According to the 2022 audited report, contained in pages 367 to 396, the Environmental Health Registration Council of Nigeria (EHORECON or Council) Abuja paid over ‘N22 million [N22,944,565.16] into the private account of some members of staff of the Council from the Constituency Projects Fund Account.

 

“There ‘was no evidence of the utilization of the funds and no explanations on the purpose for the payment of such amount into the individual accounts.”

 

SERAP added, “The Council (EHORECON) also in 2021 ‘awarded suspicious consultancy contracts of over N12 million [N12,030,818.29] for the development of Modern Abattoirs in Kebbi State and the supervision of 7 projects in Kebbi, Jigawa, and Headquarters Abuja.

“The money was to ‘produce bills of quantity, architectural design, structural design, mechanical design, and electrical designs for the contracts and supervision.’ But ‘the ‘items could not be found.’”

 

Altogether, SERAP said the Auditor-General’s 2022 report alleged EHORECON paid more than ?1.8 billion in constituency project funds through questionable transactions.

 

For the Federal College of Animal Health and Production Technology, Vom, SERAP said the institution “in 2022 reportedly ‘paid over N279 million [N279,700,500.00] to 3 contractors to empower and train youths in selected vocational areas in Borgu and Kontagora, Niger State, train women and youths in entrepreneurship in Niger East Senatorial District and to train youths and women in agro production and self-reliance in Barki Ladi/Riyom Federal Constituency, Plateau State.

 

“But the money was paid to the contractors without any document.’”

 

Other irregularities involving the college include another ?279.7 million in mobilisation fees allegedly paid without documentation, and more than ?629.4 million paid to unqualified contractors for various constituency projects without evidence of due process, contract advertisements or details of the contractors.

 

SERAP further alleged that the Auditor-General’s report identified multiple financial irregularities involving the Federal Polytechnic, Ukana, Akwa Ibom State, including over ?407 million allegedly paid as mobilisation fees without supporting documents, more than ?399 million paid to unqualified contractors, contracts allegedly inflated by over ?192 million, over ?279 million paid for projects not fully executed, ?50 million allegedly paid for an unexecuted borehole project, and more than ?83 million disbursed without the required documentation or approvals.

 

It also alleged that NAPTIP reportedly irregularly awarded contracts worth over ?21.8 million, paid more than ?176.8 million for logistics and consultancy services without supporting documents, and disbursed over ?89.6 million and ?4.4 million for projects that were allegedly not executed.

 

The report also alleged that NILDS failed to submit audited financial statements for 2012 to 2022, did not remit over ?15 million in stamp duties, and spent ?1.6 million without authorisation from the Office of the Accountant-General of the Federation.

 

SERAP said the report recommended the recovery of the affected funds and their remittance to the treasury.

 

It argued that corruption in constituency projects disproportionately affects poor and vulnerable Nigerians by diverting resources meant for public services and development.

 

It added that the National Assembly, in exercising its oversight responsibilities, should demonstrate leadership by ensuring accountability in the management of constituency project funds.

 

The organisation further argued that the allegations, if established, would amount to breaches of the Constitution, the Fiscal Responsibility Act 2007 and the Public Procurement Act 2007, which require transparency, accountability and due process in the management of public resources.

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