National Conference agrees on subsidy removal in 3 years

Delegates at the ongoing National Conference have put to rest the controversy surrounding one of the recommendations by the Standing Committee on Public Finance and Revenue demanding the complete removal of fuel subsidy by the federal government. Majority of the delegates overwhelmingly voted for a phased removal of subsidy over a period of three years.

The recommendation, which was exhaustively debated on Monday during the consideration of the committee’s report with arguments for and against, became controversially given the interests it generated.

However, during the clause-by-clause consideration of the recommendations of the committee yesterday, respite came the way of both protagonists and antagonists of the scheme when some delegates intervened by moving a motion on the matter. The motion was allowed and moved on the floor of the conference by Mr. Dan Nwanyanwu on behalf of 23 other delegates as co-sponsors.

The motion initially said that removal of subsidy on petroleum products within the next five years from now should be after fulfilling of certain conditions, which include that federal government builds new refineries and repair existing ones to full capacity utilization; that private sector investors who have been granted licenses to build new refineries shall, within a period of three years from date, build them or automatically forfeit the licenses; and that upon fulfillment of the preceding conditions, the government shall be free to remove any existing subsidy on petroleum products.

The motion eventually sailed through with an amendment by Senator Saidu Dansadau that the removal of subsidy should be three years instead of five from now and it was overwhelmingly supported by delegates through a voice vote.

Delegates at plenary also resolved that two Accountants-General, one for the Federation and another for the Federal Government be appointed henceforth for a single term of six years subject to the approval of the Senate.

An amendment by a member that salaries and allowances of political office holders be placed at par with that of senior civil servants through amendment of Section 70 of the 1999 Constitution was however rejected. Also rejected was the recommendation that the Fiscal Responsibility Act of 2007 should be enshrined in the 1999 Constitution.

It was also the decision of the Conference that henceforth, government agencies responsible for revenue generation and collection must comply with Section 162(3) of the 1999 Constitution which requires them to remit gross revenue in full to the Federation Account and resort to normal budget process of obtaining budget approval from the National Assembly to fund their operations.

Prof Eddy Erhagbe moved for the adoption of the report as amended to be the decision of the conference and he was supported by majority of delegates through voice vote amid protest by some delegates citing order 11 which says all decisions at the conference must be reached by a consensus.

Meanwhile, after the adoption of the report, another report by the Committee on Public Service was presented by the committee chairman, Engr. Ebele Okeke, ahead of its debate and consideration today.

Source: Leadership

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