Featured
Subsidy Claims Gulp N11trn In Six Years -Senate …Approves N129bn Payment To Oil Marketers Holds Valedictory Session, June 6
As Nigeria’s expenditure on fuel subsidy hits N11 trillion over the past 6years, the Senate yesterday expressed worry over the increasingly huge financial burden just as it cautioned that the huge subsidy payment if left unchecked, could kill the economy.
The senators, also berated the Federal Government for paying subsidy to oil marketers over the years without approval from the Senate and by extension, the National Assembly .
The caution came up a matter of urgent importance even at the as the National Assembly adjourned plenary till June 6 for its valedictory session, when it will officially end the four year life of the 8th session of the National Assembly.
This issue on the subsidy regime came up while the senate was considering the reports of its Committee on Petroleum Downstream during which the lawmakers took turn to lament the excessive subsidy payments which they questioned the validity.
The Chairman of the committee, Senator Kabiru Marafa (APC Zamfara Central), who presented the report to his colleagues reported that the nation over the last six years has spent over N11 trn to pay outstanding subsidy claims .
In another development, the red chamber also approved the payment of additional N129 billion subsidy claims to 67 petroleum marketers.
The Senate had earlier on Tuesday approved the payment of N68.9bn as subsidy claims to 20 petroleum marketers.
Marafa’s report reads, “That due to scarcity of Forex within the period, Oil Marketing Companies were allowed to source Forex outside CBN rate to enable them meet the country’s petroleum products demand.
“That NNPC Retail get their petroleum product allocation directly from PPPMC at already subsidized rate and so does not require forex to transact its business.”
Some of the oil marketers and the amount approved for them include: Total Nigeria PLC N13.7 billion, Northwest Petroleum N11.4 billion, Masters Energy N10 billion, MRS Oil PLC N8.8 billion and Sahara Energy N8.4 billion.
Others are: MRS Oil & Gas Limited N6.3 billion, Nipco PLC N4.2 billion, Forte Oil N3.9 billion, DEEJONES Petroleum & Gas N4.1 billion, Emadeb N4 billion among others.
Senator Barnabas Gemade in his contribution, asked why the Federal Government and the anti graft agencies had failed to convict any of the oil marketers who were indicted in the illegal subsidy claims.
He regretted that the government had not done enough in bringing the owners of the affected 50 oil firms to justice many years after their prosecution.
His words “What has happened to those who defrauded the nation? I believe that the 9th Senate will do justice to know what has happened to this money.”
Gemade also reminded the President Muhammadu Buhari-led government of its pledge subsidy payment when it came into in 2015.
“The government should stand by its words. If the government fails to end the subsidy regime, it will kill the Nigerian economy and all of will be accused to it.”He said
Senator Victor Umeh (APGA, Anambra) said, “If we continue to hope that one day this subsidy will end, we are deceiving ourselves. What would Nigerians face after this payment of arrears?”
“People in government have refused to face the problem. Everyone is depending on oil revenue and yet no functional refineries have been set in place
“The government should be able to plan to build five refineries, why can’t we use the money we get from sale of our crude to build refineries?
“The government should give us a programme to enable us have four functional refineries in five years.
“Exchange rates are not the problem, but our inability to do what others are doing is the main issue”.
In his ruling after the debate, the Deputy Senate President, Ike Ekweremadu, said “I hope that the next Assembly will be able to sit with the Executive to address this issue and resolve it without creating unnecessary tension.
“The NNPC needs to also caution itself so that they do not encroach on the appropriation responsibility of the National Assembly.
“We need to do something about provisions of refineries in our country – it is not rocket science. Even if it does not resolve the issue of subsidy, we would have gone a long way in addressing it”.
Meanwhile, the 8th Senate yesterday concluded its business session and adjourned till June 6 for valedictory, to mark the end of the session.
The Deputy President of the Senate, Ike Ekweremadu, who presided over plenary, made the announcement at the end of the day’s session.
In his remarks, Ekweremadu thanked the lawmakers for contributing immensely to the success of the 8th Senate.
He urged them to turn out massively on June 6 to officially bring the session to a close.
“I want to thank all of us who are here present for today’s plenary. Today marks the end of our business session.
“We will be meeting on June 6 for our valedictory session. I want to appeal to all our colleagues to be present,” he said.
The 8th senate, which was inaugurated on June 9, 2015 would be coming to an end after its valedictory session, to pave way for inauguration of the 9th National Assembly.
Nigeria operates a bicameral government, with the senate as the upper chamber.
It is made up 109 lawmakers, with equal representation of three lawmakers from each of the 36 states.
Since the return of democracy in 1999, each session of the national assembly, which the senate is part of, has a tenure of four years, after which elections are conducted and a new session commences.
Meanwhile, the President of the Senate is the Presiding Officer of the Senate, the Chairman of the National Assembly and third in the Nigerian presidential line of succession.
His key mandate is to guide and regulate proceedings in the senate.
He is assisted by the Deputy President of the Senate in collaboration with principal officers, which include the Majority Leader.
The Governor of Rivers State, Sir Siminalayi Fubara, has approved a minor cabinet reshuffle in the State Executive Council.
Under the new disposition, Barrister Christopher Green, who until now served as Commissioner for Sports, has been redeployed to the Ministry of Justice as the Honourable Attorney General and Commissioner for Justice.
This is contained in an official statement signed by Dr. Honour Sirawoo, Permanent Secretary, Ministry of Information and Communications.
According to the statement, Barrister Green will also continue to coordinate the activities of the Ministry of Sports pending the appointment of a substantive Commissioner to oversee the ministry.
The redeployment, which takes immediate effect, was approved at the last State Executive Council meeting for the year 2025, underscoring the Governor’s commitment to strengthening governance, ensuring continuity in service delivery, and optimising the performance of key ministries within the state.
Rivers State Governor, Sir Siminalayi Fubara, has declared that his administration will ensure the delivery of developmental projects and the prevalence of peace in all parts of Rivers State.
The Governor emphasized that the achievement of these lofty ideals can only occur through the unwavering contributions of all Rivers stakeholders.
Speaking during the commissioning of the 10.7-kilometre Egbeda–Omerelu Road constructed by his administration, the governor said Rivers State can only move forward when its people choose unity over division.
He assured Rivers people that development projects would reach every part of the State but cautioned that progress cannot thrive where conflict persists.
Reflecting on the project, Governor Fubara recalled that the road was a promise he made during the inauguration of the first phase about a year ago.
“We made a promise that we were going to do this project, and today I am happy that the government has fulfilled that promise made to Emohua people, Egbeda community and Omerelu people,” he said.
He noted that the essence of governance is service to the people, adding that responding to their needs is a core responsibility of any administration.
“We decided to do this because you know where we are coming from, and if we don’t tell our story, many won’t know what we are doing. Even in the face of tribulations, we have remained focused on delivering the dividends of democracy. We will continue to serve our people with respect and honour,” he affirmed.
Governor Fubara also reiterated his support for President Bola Ahmed Tinubu, pledging to back all groups working towards securing the President’s victory in 2027.
Giving technical details of the project, the Permanent Secretary of the Ministry of Works, Dr. Austin Ezekiel-Hart, explained that the contract was awarded on October 27, 2024, to Messrs Johnson Roadworks Limited.
He said the road links communities in Emohua and Ikwerre LGAs and shortens travel time for motorists commuting from Ahoada East, Ahoada West and Omoku through Egbeda to Owerri in Imo State.
He added that the infrastructure features a 12-metre clearing width and an 8-metre asphalt surface, comprising a 50mm binder course and a 40mm wearing course. It is complemented by 24 kilometres of drainage channels with a 1.05m² cross-sectional capacity to ensure durability and efficient water flow.
In his remarks, the Chairman of Emohua Local Government Area, Dr. Chidi Lloyd, described the road as a crucial link for surrounding communities, significantly easing movement for residents.
He praised the governor for demonstrating continuity and consolidation and prayed for God’s strength to enable him to achieve even more for the people.
Governor Siminalayi Fubara says Rivers State remains the best investment destination for investors in the oil and gas sector.
Governor Fubara stated that since the economic development of Rivers State is closely connected to the growth of the oil and gas industry, his administration has continued to collaborate with the Federal Government and host communities to protect natural assets in the sector.
The Governor stated this during the Nigeria and Entrepreneurship Summit and Honours (NESH) Foundation Oil and Gas Roundtable in Port Harcourt.
Represented by the Secretary to the State Government, Dr. Benibo Anabraba, he pointed out that since the economy of Nigeria relies substantially on the oil and gas sector, his administration will continue to collaborate with relevant stakeholders to ramp up production.
“The Nigerian oil and gas sector is the lifeblood of our nation’s economy, contributing over 90% of Federal Government’s foreign exchange earnings. Similarly, Rivers State, home to numerous national and multinational oil and gas companies, is the centre of Nigeria’s hydrocarbon industry, with the State’s oil and gas resources generating over 40% of the country’s revenue.
“?Considering this, the survival and economic development of Rivers State are closely connected to the growth of the oil and gas industry. That is why, since the beginning of this administration, we have focused on safeguarding the national oil and gas assets in collaboration with the Federal Government, security agencies, communities and other stakeholders, and we will maintain this commitment for as long as it is necessary.
“Furthermore, we have established and maintained a conducive, peaceful, and secure environment for companies to open and flourish in the State as part of a strategic plan to stimulate our economy, generate jobs, and enhance the well-being of our citizens.
“We therefore recognise and applaud the vital role that indigenous companies are currently playing in bridging gaps and advancing the development of Nigeria’s oil and gas industry,” he stressed.?
Governor Fubara affirmed that Nigerian-funded companies can only succeed and make meaningful contributions to the nation’s economic prosperity when challenges that limit the nation are effectively tackled, and expressed his administration’s stand to support indigenous organisations such as the Nigeria and Entrepreneurship Summit and Honours (NESH) Foundation.
Declaring the roundtable open, the Governor assured the Nigerian-Owned companies in the oil and gas sector, that “we are ready and willing to respond positively to any administrative, policy, or legislative recommendations within our jurisdiction as a subnational State.”
The Founder of the Nigeria and Entrepreneurship Summit and Honours (NESH) Foundation, Mr Emeka ugwu-Ozu, disclosed that the summit, held only in an oil and gas producing place, is a forum for all in the industry to brainstorm and suggest best practices for local players.
“This roundtable discussion takes place in only oil and gas producing states, and it is intentional. And that is to make sure that sooner, it becomes like what we say is the equivalent of Houston in the United States of America.
“I would say that from what I have seen so far, Rivers State is back and open, safe and good for business. The oil and gas players should come and see what we have seen,” he said.