Abuja — A fresh bid to get parliamentary endorsement for the proposed deregulation of the downstream sector of the petroleum industry was defeated yesterday at the House of Representatives as lawmakers rejected a motion seeking to put a stop to the controversial fuel subsidy policy.

The motion which was hinged on the perceived illegality of the first line charge deduction of funds from the Federation Account for the purpose of subsidising the importation of petroleum products enjoyed a good measure of support until some lawmakers raised the argument that the removal of fuel subsidy would be an indirect endorsement of deregulation.

Honourable Leo Okuweh Ogor (PDP Delta), who brought the motion alongside 68 other lawmakers, had wanted the House to declare that the deductions of revenue accruing to the federal, States and Local Governments in the Federation Account to subsidise fuel importation was illegal and should be stopped.

In his debate, Ogor noted that the deductions were not only being made at source in contravention to the constitutional provisions but that despite these deductions, motorists, vehicle owners and the general public still pay exorbitant prices over and above the official and recommended price of sixty five naira (N65) per litre of petrol.

He explained that although every state and local government bears the brunt of petroleum subsidy in terms of deductions and contribution to the Petroleum Equalisation Fund, only the rich in Abuja and perhaps Lagos enjoys the luxury as the pump price of fuel in the rest parts of the country have remained between ninety naira and one hundred naira per litre instead of sixty five naira.

He cited Section 80(4) of the 1999 Constitution which stipulates that no money shall be withdrawn from the Consolidated Revenue Fund or any other public fund of the Federation, except in the manner prescribed by the National Assembly and reminded the House that the deductions for fuel subsidy have not been appropriated for and has never been reflected in the national budget since 2004.

"It is worrisome that the deductions from the revenue accruing to the Federal, state and Local Governments from the Federation Account for the purposes of subsidising fuel importation is a violation of Section 80(4) and Section 162(3) of the constitution of the Federal Republic of Nigeria 1999. It is instructive to note that the fuel subsidy being deducted from the Federation Account is not a prescription of the National Assembly and therefore a negation of the provisions of the Constitution of the Federal Republic of Nigeria 1999," Ogor said.

Chairman, House Committee on Petroleum (Downstream), honourable Clever Ikisikpo, who argued in favour of the motion said the move to halt the Federal Government from further implementing the policy of fuel subsidy was timely as a lot of funds has been channelled towards the so called subsidy without the masses benefiting from it.

"The money spent on fuel subsidy is not appropriated for or accounted for by the authorities. It is high time we stopped it and this is why some of us support deregulation because it is the only way we can make the fuel available and allow market forces to dictate the price rather than trying to regulate the price and enriching the pockets of only a few privileged persons in society," Ikisikpo said.

Although many more lawmakers including Honourable Solomon Agidani and Honourable Friday Itulah supported the motion, the likes of Honourable Labaran Dambatta, Honourable Abdul Ningi, Honourable Falade Ajibade, Honourable Samson Positive, Honourable Samson Osagie and Honourable Mohammed Ndume countered the motion and shot it down. These pro-fuel subsidy lawmakers said despite the illegalities behind it, the country cannot afford to discard fuel subsidy policy until it has put the necessary palliative measures to cushion the effects of its removal on the citizenry.