Nigeria: Representatives Throw Out Motion Seeking Removal of Fuel Subsidy

Abuja — House of Representatives on Wednesday threw out a motion which sought to stop deduction of revenue accruing to federal, state and local governments for purposes of funding fuel subsidy.

The motion, sponsored by Leo Ogor (PDP, Delta) and 68 others was entitled "Illegal Deductions from the Federation Account for Purposes of Subsidising Fuel Importation".

It was overwhelmingly defeated by members who saw it as a veiled move to stop fuel subsidy.

Ogor, in his lead debate, prayed the House to resolve that the deduction of revenue accruing to the three tiers of government in the Federation Account to subsidise fuel importation was illegal.

He also urged the House to resolve to direct the Federal Government or its agencies to stop the deductions of revenue accruing to federal, state and local governments for purposes of fuel subsidy.

Both prayers were rejected by members who argued that removal of fuel subsidy at this point in time would impose untold hardship on Nigerians.

Ogor noted that the deductions are being made at source from revenue accruing to the three tiers of government from the Federation Account to subsidise the importation of fuel.

He noted that despite the deductions, motorists, owners of automobiles and the general public, still pay exorbitant prices ranging from N90 to N100 per litre of petrol, above the official price of N65 per litre.

The Delta State lawmaker said he was aware that Section 80 (4) of the Constitution stipulates that no money shall be withdrawn from the Consolidated Revenue Fund or any other public fund of the federation, except in the manner prescribed by the National Assembly.

He argued that the money withdrawn for the purposes of funding fuel subsidy had never been appropriated by the National Assembly.

Chairman, House Committee on Petroleum (Downstream), Clever Ikisipo, who supported the motion said fuel should be sold at the same rate everywhere in the country.

But Abdul Ningi (PDP, Bauchi) noted that removal of fuel subsidy at this point in time would impose a heavy burden on Nigerians.


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