▪︎Backs FG’s decision on fuel subsidy removal
▪︎Makes a case for palliatives for Nigerians
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has thrown its suppirt behind President Bola Ahmed Tinubu on the fuel subsidy removal.
The Commission said the decision was long overdue, pointing out that it would now help to re-set Nigeria on the path of economic growth and development.
It stated that because of the payment of subsidy, the Nigerian National Petroleum Company Limited (NNPCL) had not contributed to the Federstion Account since January 2022.
According to thd Commission, the total amount withheld by the NNPCL as claimed subsidies for this period amounted to N8,480,204,553,608.13 as reported by the Office of the Accountant General of the Federation(OAGF) which had yet to be reconciled by the RMAFC, OAGF, and NNPCL.
RMAFC Chairman, Mr Mohammed Bello Shehu, who gave the Federal Government kudos for its brave action, said the Commission had over the years continuously expressed reservations over the vexatious issue of subsidy removal as far back as during the administration of former President Olusegun Obasanjo when the late Hamman Tukur was in charge at the Commission.
He described as a master stroke the May 29 presidential pronouncement on fuel subsidy removal due to the non-budgetary provision,l.
He said that finally the jinx had been broken by the decision which presented certainly the most appropriate step in the right direction.
In a statement released in Abuja on Thursday, Shehu said the Commission’s position was based on the fact that continuous payment of humongous amounts to a privileged few in the name of subsidy was a major drain on the nation’s scarce resources.
The RMAFC Boss described as unfortunate a situation where the Nigeria National Petroleum Company limited (NNPCL), as one of the major sources of revenue accruals into the Federation Account had since stopped contributing to the national purse as a result of the fuel subsidy regime clearly tainted by opaqueness and other ambiguities.
He stated that the RMAFC, being among the 14 Federal Executive bodies established by section 153 (1)(n) and empowered by paragraph 32 (a) and (c) of part 1 of the Third Schedule of the 1999 Constitution (as amended), has always acted in line with its constitutional mandate.
This includes monitoring accruals into and disbursement of Revenue from the Federation Account and also advising Federal and State Governments on fiscal efficiency and methods by which their revenue profile can be increased.
Applauding the President for his uncommon courage and political will in finally ending fuel subsidy regime, Mr Bello said; “The country can no longer sustain fuel subsidies whose demerits far outweigh its benefits to the citizenry.”
He said the new administration must not only initiate strategic programmes to cushion the attendant adverse effects of the new policy, but also introduce deterrent measures and sanctions in accordance with the extant laws of the Federation against all the economic saboteurs whose actions and inactions had caused national adversity
On poor receipts into the Federation Account, the RMAFC Chairman said; “It is saddening to note that since 1st January, 2022 to date, the Nigeria National Petroleum Company Limited (NNPCL) has not been contributing to the Federation Account due to the claimed subsidy payments.
“The total amount withheld by the NNPCL as claimed subsidies for this period amounted to N8,480,204,553,608.13 as reported by the Office of the Accountant General of the Federation(OAGF) which is yet to be reconciled by the RMAFC, OAGF, and NNPCL.”
Also noting that a situation where subsidy transactions’ records are not transparent and crude oil prices are determined globally does not augur well for the country, Shehu said it would be unwise for the government to sustain the phantom payments of subsidy at the detriment of other critical sectors of the economy.
He said the government action would eliminate the uncertainty surrounding the subsidy regime as well as free funds for the execution of critical national development and human capital enhancement projects.
Shehu listed such projects to include the provision of affordable transport system; improved investment in the education sector; improvement in health care and infrastructural development; and resuscitation of domestic refineries to eliminate dependence on imported fuel, amongst other key sectors.
In having kind words for immediate past President Muhammadu Buhari, especially in the area of providing enabling environment for businesses to thrive, the RMAFC Chairman cited the successful commissioning of the first private refinery, easily the largest in the World built by Alhaji Aliko Dangote, noting that when fully operational, Nigeria will witness a glorious dawn in hassle-free oil production and distribution away from the subsidy regime era.
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