National Assembly shouldn’t approve N161b request

Posted by: Our Reporter Posted date: December 14, 2012

Lagos lawyer Femi Falana (SAN) yesterday raised posers over the N161 billion Presidential request to fund fuel subsidy, a few days to end of the year.

According to him, given the explanations made in the past about the N888.3 billion appropriated this year had been disbursed, the National Assembly should not approve the request to appropriate as requested by President Goodluck Jonathan.

He urged the National Assembly to invite Finance Minister Dr. Ngozi Okonjo-Iweala and Executive Secretary of the Petroleum Products Pricing and Regulatory Agency (PPPRA) to explain why the figures are not adding up.

In a statement, he said: “In 2011, the National Assembly appropriated N245 billion for fuel subsidy. In violation of the Appropriation Act 2011 and the Fiscal Responsibility Act 2007, the Central Bank of Nigeria paid N2.3 trillion for fuel subsidy on the basis of the fraudulent recommendations of the Federal Ministries of Finance and Petroleum Resources.

“However, following the investigations conducted into the fuel subsidy scam by the House of Representatives, the sum of N888.3 billion was appropriated by the National Assembly for fuel subsidy in 2012.

“While defending the 2013 budget before the House of Representatives a fortnight ago, the Executive Secretary of the PPPRA Mr. Stanley Reginald, disclosed that a total sum of N679 billion had been spent on fuel subsidy from January – October, 2012 and that the sum of N670 billion had been saved by the Federal Government.

“At an average of N67.9 billion per month, the sum of N135 billion is required to settle the fuel subsidy bill for the months of November and December, 2012. If the said sum of N135.8 billion is deducted from the N208 billion in the fuel subsidy account, there should be an outstanding balance of N72.2 billion in the account at the end of the year.

“In the light of the foregoing, the National Assembly should not approve the Supplementary Appropriation Bill of N161 billion for fuel subsidy to cover November and December, 2012.”

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