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HomeBusinessHouse Committee Probes N413 Billion Subsidy Payment Borrowed from CBN; Calls for...

House Committee Probes N413 Billion Subsidy Payment Borrowed from CBN; Calls for Measures to Cushion Subsidy Removal Impact

The House of Representatives Ad-hoc Committee has launched a probe into the N413 billion funds borrowed from the Central Bank of Nigeria (CBN) intended for subsidy payments. The Committee aims to ascertain whether the funds were refunded after the passage and assent of the 2015 budget, as previously approved by the President.

While submitting the Committee’s report to the house on Thursday, Ad-hoc Committee Chairman, Ibrahim Mustapha Aliyu, emphasized the need for the federal government to implement palliatives that could soften the impact of subsidy removal on the populace.

“The House do consider the Report of the Ad–hoc Committee on the Need to Investigate the Petroleum Products Subsidy Regime in Nigeria from 2013–2022 and approve recommendations therein,” the report stated, urging the government to act swiftly to ease the transition.

“That the Federal Government should immediately design measures and palliatives to cushion the effects of the subsidy removal for Nigerians effective from this year 2023 through the provision and procurement of CNG Busses as an alternative Transport System with Cheaper Fuel Consumption. The government should also introduce intermodal, regional and national transport system to ease mass movement of people across the country,” the report added.

In addition to these recommendations, the Committee’s report called for an end to direct sales of crude oil and advised the government to undertake measures to accurately determine actual crude oil production.

“With the subsidy removal, the Federal Government should forthwith suspend all Direct Sales Direct Purchase (DSDP) contracts. NNPC should act by the provision of the PIA to ensure that the country is not sub-changed in production, lifting and sales of crude,” it said.

The report concluded with an appeal to the federal government to collaborate with the National Assembly in identifying crucial areas of economic development, where additional revenue from the proposed subsidy removal could be effectively utilized.



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