…Urges FG to urgently secure oil assets, stop crude theft
The Senate on Thursday, approved President Muhammadu Buhari’s request for adjustments to the 2022 fiscal framework.
This was in spite of the advice by some Senators for the Senate not to hastily approve the President’s request until some basic questions are answered.
Senators Gabriel Suswam (Benue North East) and Betty Apiafi (Rivers West), specifically demanded that the Executive needed to provide needed answers to some demanding questions.
Suswam specifically raised concerns on the widening gap in budget deficit and the federal government’s decision to resort to funding from the Capital Market while Senator Apiafi on the other hand, demanded answers from the NNPC and relevant agencies on solutions in place to curb crude oil theft.
The Senate however went ahead and approved the President’s request upon the consideration of a report by the Senate Committee on Finance which was laid by the Chairman of the Committee, Senator Olamilekan Adeola.
Accordingly, the Senate approved US$73 per barrel as proposed by President Buhari.
It also approved Oil Production Volume of 1.600 million per day; Petroleum Motor Spirit (PMS) subsidy of N4.00 trillion (NGN); and a cut in the provision for Federally funded upstream projects being implemented by N200 billion from N352.80.
While approving an increase in the Federal Government Independent Revenue of N400 billion, the chamber gave its nod for an additional provision of N182.4 billion to cater for the needs of the Nigeria Police Force.
It approved debt service provision of N76.13 billion, and net reductions in Statutory Transfers by N66.07 billion.
A breakdown of the net reductions are as follows: NDDC, by N13.46 billion from N102.78 billion to N89.32 billion; NEDC, by N6.30 billion from N48.08 billion to N41.78 billion; and UBEC, by N23.16 billion from N112.29 billion to N89.13 billion.
Others are Basic Health Care Fund, by N11.58 billion from N56.14 billion to N44.56 billion; and NASENI, by N11.58 billion from N56.14 billion to N44.56 billion.
The Senate also approved the fiscal deficit of N7.35 trillion.
In his presentation, Adeola said that the total budget deficit is projected to increase by N965.42 billion to N7.35 trillion, representing 3.99% of Gross Domestic Product (GDP).
Adeola said; “The incremental deficit will be financed by new borrowings from the domestic market.”
Senators, who took turns to make contributions during consideration of the report on the review of the 2022 fiscal framework, blamed the country’s economic downturn on crude oil theft.
In his contribution, Senator Olubunmi Adetunmbi (Ekiti North), said the federal government and security agencies owe it as a duty to stop the stealing of our common wealth, adding that at a time when most countries of the world are reaping bountiful harvest due to the increase in crude oil prices occasioned by the Russia-Ukrainian crisis, Nigeria is left out owing to its inability to meet its OPEC quota.
Similarly, the Senate Leader, Yahaya Abdullahi, also said the country should be in a state of mourning over what is currently happening to it, stressing that the failure of security agencies to protect oil assets is a major reason for the decline of the economy.
Abdullahi expressed worry over the increasing cases of oil theft in spite of the huge resources allocated to the military, police and other security agencies.
President of the President, Ahmad Lawan, in his concluding remarks, called on the Federal Government to take radical steps towards stopping crude oil theft by economic saboteurs.
Lawan also called for a stop to the importation of refined petroleum products into the country in order to cut down on expenditures incurred in the process, as well as to maximize profits from crude oil sales.
He said; “This crude oil theft is not something to play politics with and I don’t think the answers are going to be easy to come by.
“Radical decisions would have to be taken, but before we find answers we have to live with this, but we have to be fast as possible in looking for answers.
“I had a session with the Chief of Defence Staff about a month ago and my discussion with him was on the oil theft and the efforts of our security agencies to combat this menace.
“And like we know, our security agencies are doing their best but we have people – our people – who are sabotaging the oil industry, because the oil theft is not perpetrated by somebody else but by people who are citizens.
“I also believe that, whether there is oil theft or not, until we stop the importation of refined products to Nigeria, we will never get the best out of the oil and gas industry.
“So, we should work to ensure that we produce our refined products locally, because that is one way of cutting off our expenditure on importation.
“I also think that diversification of the economy is key, because we depend so much on this oil and gas industry, the slightest issues that affects it internationally affects us seriously in our country,” Lawan said.
