President sends N320 billion supplementary budget to Senate
From Alifa Daniel and John-Abba Ogbodo, Abuja
THE House of Representatives yesterday, in principle, accepted the proposed deregulation of the downstream sector of the oil industry. It advised that steps should be taken to cushion its negative effects while due process should be followed.
The resolution followed a motion by the Minority Leader, Mohammed Ali Ndume, on the deregulation of petroleum products' pricing and others. He told the House that the Executive arm of government, through the Ministry of Petroleum Resources and the Nigerian National Petroleum Corporation (NNPC) had been engaging Nigerians in war of words though the National Assembly that has the right to make laws for the entire country was yet to pass any law on it. "This motion is a simple and straight-forward matter. We have a constitutional responsibility."
Ndume added: "We are aware that there is need for deregulation and the bill is before the House. We, as representatives, are put behind. We should be consulted. Sallah and Christmas are coming and this action is likely to have its effects on the people of Nigeria. "NNPC belongs to Nigeria and the petroleum products are Nigerian property."
He prayed the House to direct the ministry and NNPC to guard their pronouncements on deregulation to avoid panic and urged both agencies to sensitise Nigerians on the policy.
Also yesterday, President Umaru Musa Yar'Adua sent a N325 billion supplementary appropriation, even as he sought the permission of the Senate to make a presentation of the 2010 Appropriation Bill to the joint session of the National Assembly tomorrow.
But some senators were not comfortable with the request. An attempt by a group of senators to prevent him from presenting next year's budget to a joint session of the National Assembly suffered defeat in the Upper House as President of the Senate, David Mark, declined to sustain the opposition on the floor yesterday.
In his ruling on the disagreement, David Mark noted the point of constitutional order by Sekibo, but ruled that the President could present the budget at a joint sitting.
The Chairman of the Committee on Petroleum (Downstream), Clever Ikisikpo, blamed the situation on the poor state of the refineries. He said a cabal within the oil industry was doing everything to frustrate the operation of the refineries, adding that the sum of $7.5 million was spent on Kaduna Refinery, which was still not functioning. He declared that the only solution was deregulation of the industry.
"The ministry has not said anything about deregulation. The refineries are still not working. The sum of $7.5 million was spent on Kaduna Refinery and it is still not working. We have a cabal that is making the refineries not to work. The only solution is deregulation. All what we are doing is importation of fuel which is not in the interest of the nation. Former President Olusegun Obasanjo decided to give out the refineries, but President Umaru Musa Yar'Adua felt he could fix them but two years down the line, it is still not possible. We had such cynicism in the communication sector but now, everybody is happy about it. I appeal to members to support this deregulation. If we allow private hands to come in, things would get better. We spend about N600 billion on subsidy yearly", he said.
John Halims Agoda (Delta State) said government should be serious about the policy. Some infrastructure should be put in place to cushion the effects on the citizens.
"Government must show seriousness. Instead of providing alternatives, they engage in a show of shame. The issue of fuel is critical in our national life. Before deregulation, the transport sector must be fixed. Government should be capable of ensuring that the policy does not affect Nigerians negatively. The government should also look at the salaries of Nigerians because deregulation will result in increase in prices of many things. This time calls for constant engagement between the National Assembly and the Executive", he said.
Aro Bamidele (Kogi State); and Vice Chairman of Committee on Petroleum (Downstream) disclosed that between 2006 and 2009, the government spent N1.458 trillion on fuel subsidy. He said the way out of the problem was deregulation.
"The NNPC must ensure that necessary things are done. We should be able to explain to Nigerians what deregulation is. I agree that the NNPC has to follow due process. PMS costs about N107. The difference between N107 and N65 is the subsidy that government pays. Government has spent N1.458 trillion on subsidy between 2006 and 2009.
The Speaker, Dimeji Bankole, said that there was no need to waste time on the matter since no member wanted to speak against it. He put the question and the "ayes" carried the day.
The House also committed to the Committee on the Review of the 1999 Constitution a bill seeking financial autonomy for the Independent National Electoral Commission (INEC). The bill, forwarded to the National Assembly by Yar'Adua, was introduced by the Leader of the House, Tunde Akogun.
According to him: "The bill seeks to place INEC on the first line charge. This is to remove the bottlenecks that the commission encounters during elections."
Also yesterday, the NNPC Group General Manager, Dr. Levi Ajuonuma, said that fuel supply was robust, adding that it was left for the Department of Petroleum Resources (DPR) to carry out its functions.
"What I can tell you now is that supply is robust, nothing has changed. So, it is left for the DPR to investigate the matter. So, there is availability of fuel in the depots that can go round," Ajuonuma said.
Indications of possible ease however emerged yesterday when some of the major and independent marketers said products were being discharged at their various depots.
The Major Oil Marketers Association of Nigeria (MOMAN) however dissociated itself from the scarcity, buttressing the insinuations that it was due to lack of products for distribution.
There was tension in some parts of Lagos State yesterday when commercial bus drivers and motor bike operators stormed different petrol stations to protest the refusal of the dealers to sell the products.
At one of the stations in Ikeja, commercial bus drivers attempted to force themselves in to sell for themselves. This resulted in a fight, which attracted the Police.
Following the tension that rocked parts of the state yesterday, teams of anti-riot policemen were deployed to many petrol stations to avert any destruction of filling stations.
