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FG Postpones Petrol Subsidy Removal, Says ‘Timing Was Problematic’

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The Federal Government has postponed the planned petrol subsidy removal till further notice due to “high inflation and economic hardship”.

Subsidy or under-recovery is the underpriced sales of premium motor spirit (PMS), better known as petrol.

The government had planned to stop subsidy payments on petroleum products from July this year.

Zainab Ahmed, minister of finance, budget, national planning, disclosed this on Monday in Abuja at a meeting with Senate President Ahmad Lawan.

The meeting had Timipre Sylva, minister of state for petroleum resources; representatives of oil companies, among others, in attendance.

Last week, Lawal had said Buhari did not direct the removal of petrol subsidy, saying their “constituents are raising concerns over the policy”.

The National Economic Council (NEC) said it is still considering the recommendations of its ad-hoc committee – which proposed full deregulation and N302 per litre for PMS.

Petrol subsidy payments gulped N1.43 trillion in 2021, shrinking revenue accrued to the federation account to N542 billion – a shortfall from the projected N2.51 trillion. In December 2021, Nigeria spent N270.83 billion to cater for the cost of petroleum shortfall.

The finance minister said the government had to reconsider its decision after the 2022 budget was passed.

Ahmed said petrol subsidy was provided for in the 2022 budget to run from January till June.

She, however, said that after consultations with stakeholders — in view of the high inflation and economic hardship – additional provisions would be made beyond the initial period.

According to her, it has become clear that the timing for the removal of petrol subsidy will be problematic as the country still experiences heightened inflation.

“Provision was made in the 2022 budget for subsidy payment from January till June. That suggested that from July, there would be no subsidy,” Ahmed said.

”The provision was made sequel to the passage of the Petroleum Industry Act, which indicated that all petroleum products would be deregulated.

“Sequel to the passage of the PIA, we went back to amend the fiscal framework to incorporate the subsidy removal.

“However, after the budget was passed, we had consultations with a number of stakeholders, and it became clear that the timing was problematic.

“We discovered that practically, there is still heightened inflation and that the removal of subsidy would further worsen the situation and impose more difficulties on the citizenry.

“Mr President (Muhammadu Buhari), does not want to do that. What we are now doing is to continue with the ongoing discussions and consultations in terms of putting in place a number of measures.

“One of these include the roll-out of the refining capacities of the existing refineries and the new ones, which would reduce the amount of products that would be imported into the country.

“We, therefore, need to return to the National Assembly to now amend the budget and make additional provision for subsidy from July 2022 to whatever period that we agreed was suitable for the commencement of the total removal.”

On his part, Lawan appealed to the leadership of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) to shelve their planned industrial action over subsidy removal as it has become unnecessary.

TheCable

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How Previous Govt Shared N10bn Abia Airport Fund – Gov Otti

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By Eric Elezuo

The coming of Dr. Alex Otti as the governor of Abia State since May 2023 has continued to generate discourse in the political cycle as a result of the vote of confidence he has received across party, regional and ethnic divides.

Otti’s landmark achievements in less than a year in office, especially in infrastructural development in the commercial city of Aba, seems to have catapulted him to the highest echelon of administrative excellence in the state, dwarfing the 24 years experience of administrations of the Peoples Democratic Party (PDP). Otti is of the Labour Party.

Among his activities as governor include the exposure of grey areas in previous administration, especially as concerns his immediate predecessor, Mr. Okezie Ikpeazu.

Otti had alleged while making a presentation at the Johns Hopkins University School of Advanced International Studies. Washington DC, United States that a forensic audit revealed how the immediate past government of Abia State released some funds to some contractors to handle the construction of a state-owned airport and other infrastructure believed not to be in existence.

But Ikpeazu denied through his spokesman, Onyebuchi Ememanka, tagging the report as a tissue of lies, intricately woven by a spin doctor to deceive his audience. He also said that Otti has deep hatred for him, and has targeted him for attacks.

The statement reads in part, “Our attention has been drawn to trending reports of a speech delivered by the Governor of Abia State, Dr Alex Otti at a forum somewhere in the United States of America, wherein he made certain allegations against his predecessor in office, Dr. Okezie Ikpeazu, bothering on financial malfeasance.

“Ever since leaving office as Governor of Abia State for two consecutive terms, Dr Okezie Ikpeazu has carried himself with the dignity his present situation in life demands and has, as a matter of personal policy, avoided any confrontation with the present Governor and his administration.

“At best, what Dr. Ikpeazu has authorized are clarifications whenever the current administration seeks to misinform the public about what transpired during the last administration. Clear instances of these abound and a few of them shall be highlighted later in this release…”

Most other loyalists of the former as well as PDP apologists, including a group that called itself Centre for Reform and Public Advocacy, have also criticized Otti for his statement.

In a letter signed by a member of the group’s board of directors, Ukpai Ukairo, they demanded “A copy of the Forensic Audit Report which Governor Alex Otti, the Executive Governor of Abia State referred to and relied upon in his Town Hall Meeting in the United States of America to allege that His Excellency, Victor Okezie Ikpeazu’s administration paid billions of Naira for an airport and to un-named contractors…”

It is imperative to note that Mr. Ukairo has been the Legal Adviser of the South East PDP.

But the Abia State governor, has again said he will soon make public the forensic audit report which indicted his predecessor, of diverting billions of state funds meant for projects to individual company accounts.

He also said the immediate past administration transferred the said N10 billion airport funds into 32 different company accounts before it was shared, adding that the money had already been transferred out of the state government account before they approached the Abia State House of Assembly for approval.

The governor’s clarification came on the heels of the previous statement in the US, and the reactions that followed, This was during his monthly media chat, tagged “Governor Alex Otti Speaks to Abians” held at Government House Umuahia on Thursday.

While noting that the denial of the former governor was not unexpected, Otti pointed out that it was reported in the media, that instead of denying spending the fund, they then claimed that they used it for road construction which is against the evidence available.

According to the governor, the management of the company (FEROTEX Construction Company) has admitted that the company never applied to be awarded the aborted airport project under the past administration

He maintained, however, that when the report would eventually be published, the rest of the work would be handled by security agencies, insisting also that his interest is for the money to be refunded rather than taking anyone to jail.

“The immediate past governor’s denial is not unexpected. When it was announced, they went to the media abusing the government and saying that the government lied.

“It is a report by KPMG which says that they diverted the money into roads. In the bank statement on the 26th of September 2020 when people were dealing with COVID-19, a debit went into the state account for N10 billion and it was payment for an 80 per cent contract of the Abia airport.

“It’s true and incontrovertible. The statement is there, the report is there. By the way, the report will be published very soon.

“But I can assure you that as reported by the media, it’s KPMG that did the forensic audit.

“So, clearly something went wrong. Our engagement with the company that received the money gives the impression that the company was deceived. The Managing Director of the company said that he told them that he had never built an airport before and that it is not his area of competence neither did he apply to them to construct an airport.”

Otti’s mention of the company involved in the audit puts to rest the claim that the governor was witchhunting his predecessor. And again, the procedural sharing of the amount also revealed that something actually went wrong with the said N10 billion.

The following days will reveal more even as pro-Ikpeazu group will seek more ways to defend their principal.

“It’s very simple; all those defending the theft of the N10 billion participating in the looting otherwise they won’t have a moral ground to defend illegality. They should all be investigated,” an analyst told The Boss.

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Court Bars Amaewhule, 24 Others from Parading Selves As Rivers Legislators

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The Rivers State High Court in Port Harcourt has granted an interim injunction restraining pro-Wike speaker of the state House of Assembly, Martin Amaewhule, and 24 other members from parading themselves as legislators.

The court directive prohibits them from convening or participating in any official meetings at the Assembly premises.

The court’s decision stems from an exparte order filed against the pro-Wike lawmakers by pro-Siminialayi Fubara speaker Victor Oko Jumbo and three others.

The interim injunction declares the seats of the 1st to 25th defendants vacant pending further legal proceedings.

Additionally, the court issued a restraining order, prohibiting Governor Fubara and the chief judge, who are the 26th and 28th defendants in the suit, from engaging with Amaewhule and his 25 loyalists.

This action is due to the defendants’ defection from the Peoples Democratic Party (PDP) to the All Progress Congress (APC) on December 13, 2023.

The court also directed Amaewhule and the others to hand over all official documents within seven days. The case is adjourned until May 29 for a motion on notice.

The Rivers State House of Assembly has been embroiled in a crisis since last year which has seen the House balkanized into two, with some loyal to the Minister of Federal Capital Territory Nyesom, and others to Governor Fubara.

In December, the crisis took an interesting turn when 27 members led by Amaewhule defected from the PDP to the APC.

While the members loyal to Wike were led by Amaewhule as speaker, others loyal to Fubara were led by Edison Ehie as their speaker. The governor later appointed Ehie as his chief of staff, leading to his resignation.

However, things took another twist on Wednesday when the members loyal to Governor Fubara elected the member representing the Bonny constituency, Victor Oko-Jumbo, as their speaker.

Oko-Jumbo in his acceptance speech thanked the members for electing him as the new speaker sequel to Ehie’s resignation.

He called on the executive and judiciary as well as the public to disregard every law purportedly enacted by the Amaewhule-led Assembly, describing it as an exercise in futility.

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Oko-Jumbo Assumes Factional Leadership of Rivers Assembly As Crises Deepen

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The member representing Bonny State Constituency, Victor Oko-Jumbo, has emerged as a factional Speaker of the 10th Rivers State House of Assembly.

Oko-Jumbo promised to be transparent in the discharge of legislative duties.

He was elected on Wednesday at 10 am during plenary, in line with the Standing Order of the House.

Jumbo stated this in a statement he jointly signed with the new Clerk of the House, Dr. G. M. Gillis-West, issued in Port Harcourt on Wednesday and made available to newsmen.

In his acceptance speech, Oko-Jumbo thanked the members for electing him as the new Speaker sequel to the resignation of the former Speaker, Edison Ehie.

Oko-Jumbo accused the Martin Amaewhule-led lawmakers of legislative rascality since the political crisis that plagued the state started and declared that all laws and actions enacted and taken by what he termed illegal House have been voided.

The factional speaker also called on Governor Siminalayi Fubara to henceforth discontinue any dealings with the 25 lawmakers.

Speaking on the floor of the House, Oko-Jumbo said, “This is in line with Section 92(1) of the Constitution of the Federal Republic of Nigeria, 1999 (CFRN 1999) as Amended.

“You will agree with me that after the House last sat on the 13th of December, 2023, and adjourned sine die, there has been an avalanche of legislative rascality perpetrated by the 25 former members of the 10th Rivers State House of Assembly, led by the former Speaker, Martin Chike Amaewhule.

“These former members, being fully aware of the provisions of Section 109(1)(g) of the CFRN 1999, defected from the Peoples Democratic Party (PDP) to the All Progressives Party (APC) on the 11th of December, 2023.

“Consequently, the Rt. Hon. Edison Ogerenye Ehie-led Assembly, on the 13th of December, 2023, wrote to the Independent National Electoral Commission (INEC), declaring the seats of the 25 lawmakers vacant in line with Section 109(1)(g) and (2) of the CFRN 1999.”

He noted that there are a plethora of cases pending in courts further to the defection of the lawmakers.

Oko-Jumbo added, “All laws, plenary sessions and actions taken by the illegal House members are hereby declared void and a nullity in the eyes of the law by virtue of the judgment of Lord Denning in the celebrated case of MacFoy v UAC (1961) 3 All ER 1169.

“Lord Denning held in that case that you cannot put something on nothing and expect it to stand. Particularly, Lord Denning stated: ‘If an act is void, then it is in law a nullity. It is not only bad but incurably bad. There is no need for an order of court to set it aside.

“‘It is automatically null and void without more ado, though it is sometimes more convenient to have the court declare it to be so’.”

He stated further that every proceeding which was founded on the activities of the lawmakers had become ‘bad and incurably bad’.

“You cannot put something on nothing and expect it to stay there. It will collapse,” he added.

He called on the Executive arm, the Judiciary and the general public to disregard every law purportedly enacted by members of the other faction.

He added, “Furthermore, this House would want to most respectfully urge and call on His Excellency, the Governor of Rivers State, Sir Siminalayi Fubara, to desist forthwith from further dealings with the 25 former lawmakers, in whatever guise.

“Those members are merely floating and do not have any landing ground or anywhere to berth their ship since their defection to the All Progressives Congress on the 11th of December, 2023.

“This House is the legally and constitutionally recognised House of Assembly by virtue of the defection of the other members and is ready to receive correspondences from and work with His Excellency, the Governor of Rivers State, Sir Siminalayi Fubara. Distinguished colleagues, let me thank you once again.”
Speaking to journalists after the sitting of the House, Oko-Jumbo said he would stay true to his constitutional duties and work assiduously for the growth and development of Rivers people and the state.

“We will sit again, and communicate our proceedings to the public and make sure that we are doing what we ought to do to ensure there is transparency and clarity of leadership of the 10th Legislative Assembly,” he said.

Also speaking, a factional Leader of the House, Sokari Goodboy Sokari said, “As the chairman of the government business in the 10th Assembly, as you’ve heard our Speaker say, we will work in line with set goals to achieve synergy with the Executive.

“But away from that, we want to further warn that if His Excellency, the governor ever have any dealing with those former members, we, the original members of the 10th Assembly, who by the provisions of the Constitution, form the quorum to address the legislative business of the day, will have no choice than to raise the gavel, which is to commence impeachment proceedings against him.”

He, therefore, urged Fubara to cooperate and work in tandem with the legitimate members of the 10th Assembly to ensure the delivery of good governance and quality dividends of democracy to the people.

Meanwhile, the new Speaker was led to the plenary with the original mace of the Rivers State House of Assembly by the Sergeant-at-Arms, David Wariboko, who managed the last sitting of the Amaewhule-led Assembly in the same position.

The Punch

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