Following the grilling by the House of Representatives Ad Hoc Committee to Investigate the Petroleum Products Subsidy Regime from 2013 to 2022, on Thursday, the Minister of Finance, Budget and National Planning, Zainab Ahmed, has disclosed when petrol subsidy will end.
In her presentation, Ahmed disclosed that the Federal Government had now proposed a new date to end payments on under-recovery between the landing cost and regulated pump price of PMS, stating that the subsidy regime was not sustainable and might force the government to borrow more in 2023.
According to the finance minister, the government had now planned for payment of subsidy for only half of next year, as contained in the 2023-2025 Medium Term Expenditure Framework and Fiscal Strategy Paper.
Ahmed further disclosed that the President, Major General Muhammadu Buhari (retd.), transmitted the MTEF/FSP to the President of the Senate, Ahmad Lawan, and Speaker of the House of Representatives, Femi Gbajabiamila, as approved by the National Economic Council and the Federal Executive Council, respectively.
The minister also gave a breakdown of withdrawals from the Consolidated Revenue Fund and the Excess Crude Account for payments to oil marketers under the subsidy regime.
Ahmed, however, told the committee to request the statement of account of the NNPC from the company directly.
Several members of the committee, however, expressed their reservations about the payments, especially without determining the actual volume of PMS being circulated and consumed daily.
A lawmaker, Ibrahim Isiaka, asked for the rationale behind NNPC’s deduction of N1.66tn from source, against the N1.15tn paid to oil marketers in 2021, leaving an excess of N500bn.
Consequently, the committee resolved to request documentary evidence of the beneficiaries of the N500bn.
