Conference rejects fuel subsidy removal

The matter which generated serious debate Monday was resolved yesterday through a motion by Dan Nwanyanwu and 24 others.The delegates however agreed that fuel subsidy should be removed within the next three years from the time the government approves the conference report; and it should be preceded by building of new refineries and repair of […]

The matter which generated serious debate Monday was resolved yesterday through a motion by Dan Nwanyanwu and 24 others.
The delegates however agreed that fuel subsidy should be removed within the next three years from the time the government approves the conference report; and it should be preceded by building of new refineries and repair of existing ones to full capacity.
The conference unanimously resolved that private sector investors granted licenses to build new refineries shall, within a period of three years, build such refineries or automatically forfeit such licenses to enable other participants who are ready and willing to build such refineries to do so.
 It was argued that although the subsidy regime has been fraught with massive corruption, immediate removal of subsidy without requisite mitigating infrastructure was bound to have a spiral effect that may see prices of essential commodities rising with attendant effect on the masses.
The committee’s recommendation had met a brick wall on Monday when it was raised on the floor of the conference with both those who were for and those against stating their positions with vehemence.
In a bid to eliminate corruption in the country, the conference said the National Assembly should enact what it called Ill-Gotten Gain Act such that individuals can be held to explain the sources of their wealth.
Conference however rejected an amendment by a member that salaries and allowances of political office holders be placed at par with that of senior civil servants through amendment of Section 70 of the 1999 Constitution.
It rejected also another recommendation that the Fiscal Responsibility Act of 2007 should be enshrined in the 1999 Constitution although it was resolved that its adherence be strictly followed.
It was decided also that henceforth, government agencies responsible for revenue generation and collection must comply with Section 162(3) of the 1999 Constitution which requires them to remit gross revenue in full to the Federation Account and resort to normal budget process of obtaining budget approval from the National Assembly to fund their operations.
Therefore, conference resolved that all the sections of the enabling Acts of these departments and agencies of government that allow them to retain revenues and surplus to fund their operations be amended.
To boost mechanized farming across the country, delegates agreed that Agricultural Development Fund be set up and 10 percent of the money from the Excess Crude Account be set aside for the fund.
It was also agreed that Section 85(3) be deleted from the 1999 Constitution to enable the Auditor General of the Federation to audit or appoint external auditors to audit accounts of commissions, agencies and corporations established by Acts of the National Assembly.