Reps committee to audit petrol subsidy regime

Reps committee to audit petrol subsidy regime

 The house of representatives committee on petroleum
resources (downstream) says it plans to conduct a comprehensive audit of the
petrol subsidy regime in the country.

 

Ikeagwuonu Ugochinyere, chairman of the committee, made this
known at the committee’s inauguration in Abuja on Friday.

 

He said the committee’s legislative priorities include
ensuring energy security, enhancing professionalism in the petroleum sector,
and driving economic transformation.

 

Other priorities, he said, are fostering accountability,
institutional reforms, and focusing on revenue recovery and generation.



“The committee’s specific objective is to assist the federal
government in recovering the 20 billion dollars revenue lost in the sector,” he
said.

 

He said the committee would also prioritise early remittance
of federal revenues and the recovery of unremitted funds in the coming days.

 

Ugochinyere emphasised the importance of addressing the
challenges faced by Nigerians due to the removal of subsidy on petrol.

 

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The chairman said the committee also plans to probe the
subsidy beneficiaries, scrutinise loan transactions and pre-export financing
arrangements, and review loans related to crude oil.

 

The lawmaker said the committee would examine the direct
sales and direct purchase method, which he said involved using crude for
importing refined petrol and other associated value chains.

 

He said the committee would collaborate with other relevant
committees in the upstream, mainstream, gas, and petroleum training fund
sectors to achieve its objectives.

 

In reviewing the PIA, he said the committee plans to assess
the actions taken before and after its implementation, the status of national
assets, and the achievement of energy security.

 

Also, he said the committee would examine competition in the
downstream sector, as originally intended in the PIA.

 

Ugochinyere said the committee would address the issue of
NNPC being the primary petrol importer, contrary to the PIA’s vision of diverse
downstream operators.

 

He said the committee would examine the challenges related
to domestic crude supply for modular refineries and local refineries, which is
a constitutional provision under the PIA.

 

“The committee will also ensure adequate supply of domestic
crude to achieve energy security,” he said.

 

Ugochinyere expressed confidence in the committee’s ability
to fulfil its mandate, urging stakeholders in the petroleum sector to cooperate
in the discharge of its functions.

Source: Reps committee to audit petrol subsidy regime

 - NigerianEye
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