House of Representatives to conduct comprehensive audit of petrol subsidy regime

The House of Representatives Committee on Petroleum Resources (Downstream) has announced its intention to carry out an extensive audit of the subsidy regime concerning Premium Motor Spirit (PMS), also known as petrol, in Nigeria.

The chairman of the committee, Ikeagwuonu Ugochinyere, made this announcement during the committee’s inauguration in Abuja on Friday.

Mr. Ugochinyere outlined the legislative priorities of the committee, which include:

1. Ensuring energy security
2. Enhancing professionalism in the petroleum sector
3. Driving economic transformation
4. Fostering accountability
5. Implementing institutional reforms
6. Focusing on revenue recovery and generation

He stressed the committee’s specific objective of assisting the federal government in recovering the $20 billion in revenue lost in the petroleum sector.

The committee’s plans also involve prioritizing the early remittance of federal revenues and recovering unremitted funds. They aim to address the challenges faced by Nigerians following the removal of fuel subsidies.

Furthermore, the committee intends to investigate subsidy beneficiaries, scrutinize loan transactions, and review loans related to crude oil. They will examine the direct sales and direct purchase method, which involves using crude oil for importing refined petrol and other related value chains.

To achieve its objectives, the committee will collaborate with other relevant committees in the upstream, mainstream, gas, and petroleum training fund sectors.

In the context of reviewing the Petroleum Industry Act (PIA), the committee plans to assess actions taken both before and after its implementation. They will evaluate the status of national assets and the achievement of energy security. Additionally, the committee will examine competition in the downstream sector, as originally intended in the PIA.

The issue of the Nigerian National Petroleum Corporation Limited (NNPCL) being the primary petrol importer, which contradicts the PIA’s vision of diverse downstream operators, will also be addressed. The committee will tackle challenges related to domestic crude supply for modular and local refineries, aligning with constitutional provisions under the PIA.

In sum, the committee aims to ensure an adequate supply of domestic crude to achieve energy security in the petroleum sector. The comprehensive audit of the petrol subsidy regime and related investigations are part of their strategy to improve transparency and address crucial issues in the industry.

Credit: NAN