The Senate has initiated an investigation into the oil subsidy regime operated by the federal government until its removal in May 2023.
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The Senate criticized the N9.3 trillion spent on the subsidy regime from January 2021 to June 2023 and called for a living wage for workers to mitigate the effects of subsidy removal.
Additionally, the Senate called for the establishment of three functional refineries to produce and distribute refined petrol locally and reduce the pump price.
The Senate mandated the standing Committees on Petroleum (Downstream), Petroleum (Upstream) and Finance to investigate all controversies surrounding subsidy and under-recovery regimes.
The Senate also urged the Nigerian National Petroleum Company Limited (NNPCL) to form three consortiums with major international oil companies to build and stabilize the oil market and the nation’s economy.
Senator Chiwuba Ndubueze sponsored the motion titled “Need to Investigate the controversial Huge Expenditure on Premium Motor Spirit (PMS) under the subsidy/under-recovery regime by the Nigerian National Petroleum Company Limited, NNPCL.”
Senator Ndubueze highlighted that the NNPCL spent N9.3 trillion on subsidy and under-recovery, N843.121 billion between January 2018 and January 2019, and N170 billion between 2006 and 2015.
He said: ” Very worrisome of the expenses made on subsidy/under recovery by NNPCL during period under review , particularly from January 2021 to June 2023, was N9.3trillion claimed to have been spent”.
Many senators who contributed during the debate criticized the NNPCL for the high expenses made on the subsidy regime and supported the motion’s prayers.
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