Kerosene Scarcity Worries House Of Representatives

House of Representatives Speaker Aminu Tambuwal, who was represented by his deputy, Emeka Ihedioha, yesterday delivered a speech at the opening of an investigative hearing on kerosene subsidy, decrying mystery surrounding the subsidy on the product. Excerpts:

It is my pleasure to join the Chairman and members of the House Committee on Petroleum Resources (Downstream) to welcome you all to this all important national assignment being undertaken by the National Assembly on behalf of all Nigerians.

You will recall that on 27th November, 2013, the House of Representatives in the discharge of its statutory mandate unanimously resolved to carry out full investigation on the expenditure, supply, distribution and subsidy on kerosene. The House mandated its Committee on Petroleum Resources (Downstream) to carry out this extensive investigation on her behalf for the benefit of all Nigerians.

Kerosene has become the most topical issue in Nigeria today for several reasons. First, it has been empirically proven that at least 30 per cent of households depend on kerosene as source of domestic fuel. About 56 per cent of our population still depend on firewood due to lack of access to kerosene. The implication is that about 80 per cent of our population will most likely depend on kerosene as source of domestic fuel. Whatever affects 80 per cent of the population affects the entire country. As representatives of the people we have an obligation to ensure that our people are not made to pass through avoidable hardship.

Secondly, today almost all our citizens will agree that it is easier to have access to gas and PMS than kerosene. The scarcity of kerosene has become a national embarrassment. It is so serious that the 7th House of Representatives in its first legislative year invited the Minister of Petroleum Resources to explain to the public through the instrumentality of the House at plenary. Since that time not much has improved on the supply and distribution of kerosene.

Third, worse still when kerosene is available it is sold at such an exorbitant rate that Nigerians pay with their blood to get a little of kerosene. This obviously is not acceptable and cannot be in the best interest of our people.

Fourth, the country has spent at least one trillion over the past four years to subsidize kerosene yet the product is neither available nor is it sold at the official NNPC pump price whenever it is found and wherever.

Fifth, nobody can say what our kerosene consumption volume is per annum. Kerosene consumption volume cannot under any arrangement be a national secret. Transparency and accountability are things we should take for granted in 21st Century democratic Nigeria.

Sixth, the masses, which is the justification for subsidy on kerosene, are in no way benefiting from the “subsidy”on kerosene thus NNPC needs to explain to the Nigerian people how it spent part of the $8.9bn, or $10.8bn or $20bn CBN accused her of not remitting to the Federation Account which NNPC claimed was spent on kerosene subsidy.

Seventh, since there are no budgetary provision for subsidy on kerosene, the people of Nigeria will obviously be interested in knowing the source of funding of kerosene subsidy and on whose authority.

These and several other issues warranted a full scale investigation to unravel issues surrounding kerosene subsidy so all Nigerians will be satisfied that kerosene subsidy is actually serving the interest of the masses. Because kerosene affects 80% of households in Nigeria, this is obviously a most strategic national inquiry.

It is our fervent believe that the findings of this investigation will assist us as a nation better manage our resources, block leakages if any and ensure that all our people have access to kerosene at a competitive price.

Most importantly the outcome of this investigation is expected to boost confidence of the people on the management of our economy and protect the people of Nigeria from unavoidable losses. Let me reiterate that this is a constitutional duty and not a witch haunting exercise. In the short life span of this 7th House of Representatives, we have made accountability and transparency our watchword as demonstrated in earlier investigative hearings conducted by the House.

I urge all of you stakeholders; Ministers, Policy Makers, Government Officials, NNPC, Marketers, Retailers to give the National Assembly maximum co-operation for the interest of all Nigerians that we are serving. I charge the House Committee on Petroleum Resources (Downstream) to be guided by truth and fairness, and not uninformed public sentiment as history is watching all of us.