36 States Seek Fuel Subsidy Removal …Senate Demands Details Of Subsidy Deals …FG, States, LGs Share N641.299bn For Feb

Former Prime Minister of Ireland, John Bruton (middle) cutting the tape to officially inaugurate the Primary Health Centre at Ozuoba in Obio/Akpor LGA. He is flanked by Rivers State Governor, Chibuike Amaechi (right), Nyeweali Akpor Kingdom, Eze Aniele Agbaraka Orlu, (2nd right), former British Foreign Secretary, Jack Straw (2nd left) and Rivers State Commissioner for Health, Sampson Parker, at the commissioning.

The Forum of Commissioners of Finance from the 36 states of the federation yesterday, in Abuja, passed a resolution for the removal of fuel subsidy.
The Chairman of the forum, Mr. Timothy Odah, told journalists shortly after this month’s Federation Account Allocation Committee’s meeting, that the resolution was passed following irregularities observed in the fuel subsidy regime.
The forum passed the resolution just as fuel scarcity that started two weeks ago across the nation, persisted in the Federal Capital Territory and in most state capitals, with many motorists queuing at filling stations.
The FAAC meeting, which was chaired by the Accountant -General of the Federation, Mr. Jonah Otunla, was convened to consider and approve statutory allocations for February.
Odah, who is also the commissioner of finance representing Ebonyi State at FAAC, said the resolution would be sent to the Nigerian Governors’ Forum for transmission to President Goodluck Jonathan.
He described the payment of fuel subsidy as a scam against some states, especially the less industrialised ones as it had made “the rich to becoming richer while the poor are become poorer.”
He argued that if Nigerians had not protested against the removal of fuel subsidy in January 2012, most states would have experienced significant level of development.
The Federal Government has a budget of N971.1billion for fuel subsidy payment for the 2014 fiscal year, same as in 2013.
Odah, said, “We looked at subsidy on oil as more or less a solution worse than the problem it is meant to solve.
“Looking at it presently, you will discover that it is not solving the problem which it is meant to solve. In the first place, the NLC (Nigeria Labour Congress) and the majority of the Nigerian populace appear to have been deceived into clamouring for subsidy.
“It’s a system that robs Peter to pay Paul by making the rich to grow richer and the poor to go poorer.
However, the Senate Committee on Finance has given the Petroleum Product Pricing Regulatory Agency (PPPRA) two weeks to submit certification details of subsidy for kerosene and petrol from July 2013 to December 2013.
The committee is investigating the alleged non-remittance of $20billion to the Federation Account by the Nigeria National Petroleum Corporation (NNPC).
The PPPRA management had earlier requested for three weeks to enable it collate all details on the certification of subsidy for kerosene and fuel for six months.
The committee, however, turned down the request and granted the agency only two weeks to furnish it with the necessary documents to enhance its probe into the allegations.
The Chairman of the committee, Sen. Ahmed Makarfi, said the committee was expecting the report of the independent consultants it appointed to conduct forensic examination and audit of expenses incurred by NNPC.
Makarfi said that the Auditor-General of the Federation had written to the committee confirming he had commenced forensic checks on the alleged unremitted funds.
He said the Auditor-General had also assured the committee that the result of the forensic check, expected to cover all areas of concerns, would be made available to the committee.
Makarfi said the auditor-general had also written to the committee confirming that he would conduct forensic checks.
He added that the auditor-general assured the committee that the forensic check would be comprehensive and would cover all the areas of concern.
The chairman quoted the auditor-general as saying that the report of the forensic check would be sent to the committee.
He said that the committee would conclude its work and present its report to the Senate after it received the reports of the independent forensic auditors and the final certification from PPPRA.
The chairman said that the committee would not hesitate to invite any of the agencies for clarification during the course of the technical session to consider the submissions before arriving on specific decision.
But NNPC Group Managing Director, Mr Andrew Yakubu, insisted that there were no missing funds.
Yakubu said that it was wrong for anybody to claim that funds were not remitted to the Federation Account.
Yakubu told the committee that the ongoing investigations would enable the NNPC to give explanations that would help to clear the negative perception about the oil and gas industry.
He added that in the course of the investigations, the corporation was able to present a detailed breakdown of all the remittances it made to the Federation Account.
The NNPC boss said that the corporation was determined to present to the Senate a detailed analysis of the various streams of funds that belonged to all the key players in the petroleum business arrangement.
Meanwhile, the Federal Government, states and local governments yesterday shared N641.2billion from the Federation Account for February.
The Accountant-General of the Federation (AGF), Mr Jonah Otunla, made the disclosure in Abuja when he addressed newsmen on the outcome of the Federation Account Allocation Committee (FAAC) meeting.
“The distributable statutory revenue for the month is N531.332billion, which is N27.647billion more than the N503.685billion that was shared for the month of January.
“Also distributed is the sum of N7.617billion refunded by the NNPC to be shared to states and local governments. In addition, the sum of N35.549billion is proposed for distribution under the SURE-P Programme.
“So the total revenue distributable for the current month, including Value Added Tax (VAT) of N66.801billion is N641.299billion,’’ he said.
A breakdown of the distribution showed that the Federal Government received N247.533billion, representing 52.68 per cent; states, N125.552billion, representing 26.72 per cent, while local governments received N96.795billion, amounting to 20.60 per cent.
Otunla added that N56.384billion, representing 13 per cent derivation revenue was shared among the oil producing states.
On VAT, the AGF said that the gross revenue collected in February was N66.801billion as against N82.277billion distributed in January representing a decrease of N15.476billion.
He said that the mineral revenue collected for February was N569.136billion, more than the N439.562billion realised in January making a different of N129.574billion.
He stated that non-mineral revenue collected during the period under review was N97.609billion.
The figure he added showed reduction of N3.699billion from the N101.308billion that was collected in January.
Otunla said that N135.413billion was transferred to the nation’s Excess Crude Account (ECA), thereby bringing the total in the account of ECA to $3.456billion.

Professor Emeritus, Nimi Briggs (left) exchanging pleasantries with Deputy Vice Chancellor, University of Port Harcourt, Prof Ethelbert Nduka, who represented the Vice Chancellor, Prof Joseph Ajienka, at the symposium in honour of Prof Ozo-Mekuri Ndimele held at the university auditorium, last Wednesday. Photo: Nwiueh Donatus Ken