The House of Representatives’ Ad Hoc Committee to Investigate the Petroleum Products Subsidy Regime from 2013 to 2021 has said it does not know the profile of 23 oil and gas companies trading in Nigeria.

The panel is investigating payments made by the Federal Government through the Nigerian National Petroleum Corporation (now Nigerian National Petroleum Company Limited) for the subsidy on Premium Motor Spirit, popularly known as petrol, within eight years.

The Chairman of the committee, Ibrahim Aliyu, at the resumption of the investigative hearing on subsidy payments on Wednesday, stated that the firms had major serious questions to answer.

Aliyu read part of a communication from the Corporate Affairs Commission, in response to the committee’s request for the profile of the companies, said there were no details on the firms.

The lawmaker stated that the committee would be forced to write to the embassies of the countries where the companies are based for information on them.

The communication from the CAC, a copy of which our correspondent sighted, was dated July 13, 2022, with Reference Number RGO/SU/VOL.5/2022/0248 and was signed by one Maimunat Hamu on behalf of the Registrar-General.

Reps kick as stakeholders shun subsidy probe
It read, “Kindly refer to your letter Ref: NASS/QHR/AHC/PPSRIM1/1H/01/051 dated 1st July, 2022, on the subject matter above.

“Please be informed that we could not readily find information on the exact name of the following companies as provided in our record.

“Emadeb Consortium; Britania-U Nig. Limtted; Totsa Total Ol Tradings SA; Petroleum Trading Nigeria Limited; Mocoh S.A; Socer Worldwide; Calson Bermuda Ltd; Hyson; Litasco S.A; Mercuria Energy; Cepsa Lubricant; Trafigura Pte; Vitol S.A; Ocanbed Trading Limited; Bonno Energy; West Africa Gas Limited; Petrogas; Matrix; Masters Energy; Amg; Barbedos; Hindustan and Patermina.

“However, you may wish to provide the registration numbers or any other available documents at your disposal to enable us to investigate further.”

An earlier communication from the CAC was referenced NASS/9HR/AHC/PPSR/14/iH/01/051 and dated 1st July, 2022, had the list of some of the oil firms under probe by the committee.

They are Heyden Petroleum Limited RC: 433175; Graton Oil Limited KC: 644074; Duke Oil and Gas. Limited RC; 64456145; Matrix Energy Limited RC: 612026; MRS Companies Limited RC: 241,013; Sahara Trade Nigeria Limited RC: 352,443; Essar Exploration And Production Limited RC: 692910; Sahara Group Limited RC: 668626; Rainoil Limited RC: 257,444; Casiva Limited RC: 1091598; Petroleum Trading and Supplies Company Limited RC: 506113.

Why are oil subsidies bad economics?

Every year, the Nigerian government runs huge budget deficits that could have been avoided if money budgeted for oil subsidies was allocated to other critical projects.

Subsidies should be used to spur investment in activities that raise the productive capacities of an economy (such as education, health, entrepreneurship, and infrastructure). They should be targeted at strategic sectors of the economy. They should not be used to finance non-durable consumption items like petrol.

Oil subsidies are inequitable, as they transfer the national wealth to those who own several cars and add little or no value to the national economy.

In lieu of subsidies, the government should invest massively in public transportation and boost the transport allowances of public-sector workers.

Removing fuel subsidies would also be good for the environment and safety on Nigerian roads. When motorists pay the full economic price for petrol, they will drive less, emit less pollution and reduce the incidence of road accidents.

There should be a clear communication to Nigerians that the removal of fuel subsidies favours the poor, and eliminates one of the several perks that the Nigerian elites undeservedly enjoy.

SpecialAdviser:
Nigeria is a huge crime scene

twentyfivekobo:
That's why subsidy should go.

But we don't want to pay the market price for petrol so we keep feeding the corrupt in return for 40 naira fuel.

newcommer:



Who is buying fuel for 40 naira in this country? Shameless old liar. subsidywise, backbencher, backbencher2.

ijustdey:


https://punchng.com/subsidy-probe-reps-say-23-oil-firms-unknown/

ijustdey:


https://punchng.com/subsidy-probe-reps-say-23-oil-firms-unknown/

Roanoh:
Can you imagine?