, • •

FOURTH REPUBLIC 7TH NATIONAL ASSEMBLY FIRST SESSION No. 94 781 •

HOUSE OF REPRESENTATIVES FEDERAL REPUBLIC OF VOTES AND PROCEEDINGS Tuesday, 24 April, 2012 1. The House met at 11.50 a.m, Mr Speaker read the Prayers.

2. Votes and Proceedings: • Mr Speaker announced that he had examined and approved the Second Votes and Proceedings of Thursday, 19 April, 2012.

By unanimous consent, the Votes and Proceedings was adopted.

3. Annonncement: (I) Bereavement: Mr Speaker read a communication from Hon. Christopher Omo Isu (Ajikpo North/Afikpo South Federal Constituency) informing the House of the demise of Hon. Sam Oko Alu (Afikpo Federal Constituency), a former Member of the House of Representatives (1979 - 1983) on Thursday, 2 February, 2012.

A minute's silence was observed in honour of the deceased.

(i.) Appreciation: Mr Speaker read a letter of appreciation from the Minister of FInance, Dr Ngozi Okonjo-Iweala for the support of the House of Representatives for her candidacy for the post of the President of the World Bank.

4. Presentatlon of Report: Committees on Interior, and National Planning and Economic Development: Motion made and Question proposed, "That this House do receive the Report on the Committees on Interior, and National Planning and Economic Development on the Urgent Need to Investigate the Federal Government's 30 Billion Naira National Identity Card Scheme Project" (Hon. Umar Bature - Sokoto NonhlSokoto South Federal Constituency).

Question pur and agreed to.

Report laid.

5. Mr Speaker's Remarks on the Report of the Ad-hoc Committee on the Monitoring of Subsidy Regime:

We shall not waver

My fellow Col/eagues,

You will recall that on Sunday, January 8, we had to cut short our r;cess in response to a national crisis as a result of the sudden removal of fuel subsidy iJ)' the Executive Arm of Government.

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2. The commitment and patriotism Shown by members during that period of emergency finally led to the gradual resolution of that crisis.

3. Today, we are here to consider the product of that sacrifice, Before you is the report of the Ad-hoc Committee on the monitoring of fuel; subsidy regime which was set up to verify and determine actual subsidy requirements.

4. And I must commend the Chairman of the Committee, Han Farouk Lawan and the rest of his Committee Members, for their courage, dedication and professionalism. They were given a crucial assignment and they handled it with the integrity and patriotism it deserved.

5. The probe of the oil Sector has raised so much dust from certain segments of the polity such that it became clear that the intention was to frustrate it. For those who regard the oil sector as a secret society or sacred cow, I wish to state without equivocation that it is not. All public agencies in the oil sector are the creation of Acts of the National Assembly and this Honourable House has no powers to legislate for the creation of secret societies. Similarly all private sector corporate bodies operating in the sectar are the creation of the Corporate Affairs Commission and that Commission also is not vested with any powers to incorporate secret societies. Let it therefore be known that in our drive to sanitize the polity, there are no sacred cows and we do not intend to discover any.

6. However, that is only one part of the job. We now have the more crucial duty of considering the report and recommendations of the committee. Usual~ in a matter such as this, one is accustomed to hearing differing opinions presented passionately. Or passions presented as opinions.

7. But we must never forget who we are and ';'here we are, because Nigerians are watching us very closely and history will judge what we do here today. I therefore urge each and everyone of you to look at this report dispassionately.

8. Be fair in your comments and set aside all primordial sentiments so that we can do justice to this important document.

9. Let me reiterate the fact that we are discharging a Constitutional assignment here and it is therefore incumbent upon us to do our duty without fear or favour. Let me also remind you that we are fighting against entrenched interests whose infectious greed has decimated our people. Therefore, be mindful that they willfight back, and they do fight dirty.

10. I have heard all kinds of insinuations, including the one about anti-graft agencies waiting for a 'harmonise version' of this report before taking any action. Let me quickly say here that this is at best an excuse that can not stand after all the same agencies accept and investigate petitions from individuals, how much more resolutions of this House, there will be no such document so they should just go ahead and do their job and where they find any person or body culpable, they should proceed in accordance with the law.

11. Our only interest here is to mitigate the suffering of Nigerians by showing how the subsidy regime has been hijacked for the benefit of a few. At the end of our deliberations we hope that the executive arm will act upon the resolutions of this House and bring more transparency to bear on the system.

12. Together we can do all things constitutionally required of us but not without sacrificing our personal comforts, personal aspiration and even personal opportunities that do not benefit the public good. For as many are prepared and determined to make these personal sacrifice and to stand on the side of the ordinary Nigerians whose mandate we hold, I say let's march on dear col/eagues.

13. My fellow col/eagues, I wish you God's guidance.

Thank you.

6. Consideration of Report: Ad-hoc Committee on the Monitoring of Subsidy Regime: Motion made and Question proposed, "That this House do consider the Repdrt of the Ad-hoc Committee on the 'vtonnorinp of Subsidy Regime and approve the Recommendations therein" tHon. Farouk M. Lawan - Shanono.Bagwai Federa! Constituency). -e

n"Ol."finn nut and aereed to. ~• .' •

-: No. 94 Tuesday, 24 ApJ'll, 2012 783

Question that the House do resolve into Committee of the Whole to consider the Report, put and agreed to.

(HOUSE IN COMMITTEE) • (Mr Deputy Speaker in the Chair)

Recommendation (I): "That from the findings of this Committee the consumption level for 2011 is estimated at 31.5 million litres per day, However, in 2012 marginal increment of 1.5 million litres a day is recommended in order to take care of unforeseen circumstances, bringing it to 33 million litres per day. And to maintain a strategic reserve, an additional average of seven (7) million litres per day (or 630 million litres per Quarter) for the first quarter of 2012 only is recommended. Thus, Petroleum Products Pricing Regulatory Authority (PPPRA) is to use 40 million litres of Petroleum Motor Spirit (PMS) in the first quarter as its maximum ordering quantity per day. In subsequent quarters Petroleum Motor Spirit (PMS) daily ordering quantity should be 33 million litres per day. For Kerosene, the Committee recommends a daily ordering quantity of 9 million litres" (Hon. Farouk M. Lawan - Shanono/Bagwai Federal Constituency),

Question put and agreed to.

Recommendation (iz): "That with regards to.the 445,OOObpdallocation to Nigerian National Petroleum Corporation (Nigerian National Petroleum Corporation (NNPC» to refine for local consumption, the Committee established that the allocation is sufficient to provide the nation with forty million liters per day for Premium Motor Spirit (PMS) and Ten million liters of House Hold Kerosene (HHK); I~

The above can be achieved conveniently through:

• SWAP arrangement;

• Offshore processing;

• Outright sale of the 445, OOObpdand or partial sale of the excess from the local refining capacity of 53%;

Therefore there is no reason for government to grant subsidy importation to any other marketer. Even though we have quoted 40 million liters as a liberal figure, in the course of monltoring the implementation of the subsidy regime the actual daily consumption will then he determined" (Hon. Farouk M. Lawan - ShanonolBagwai Federal Constituency).

Question put and agreed to.

Recommendation (iiI): "That the Nigerian National Petroleum Corporation (NNPC) should refund to the Federation Account, the sum of "'310,414,963,613 (Three hundred and ten billion, four hundred and fourteen million, nine hundred and sixty three thousand, six hundred and thirteen Naira only) paid to it ilIegally as subsidy for kerosene contrary to the Presidential Directive of July 29, 2009 withdrawing subsidy on the product" (Hon. Farouk: M. Lawan - Shanono/Bagwai Federal Constituency).

Question put and agreed to.

Recommendation (iv): "That the Committee recommends that the Nigerian National Petroleum Corporation (NNPC) should be unbundled to make its operations more efficient and transparent, and this we believe can also be achieved , through the passage of a w~afted and comprehensive Petrol~um Industry Bi~e Committee therefore urges the speedy drafting and submission of the bilI to the National Assembly if (Hon. Farouk M. Lawan - Shanono/Bagwai Federal Constituency). '

Debate:

~- ~- 784 Tuesday, 24 April, 2012 No. 94

Amendment Proposed: In line 3, immediately after the words "Industry Bill", leave out all other words (Hon. Emmanuel Jime - Makurdi/Guma Federal Constituency). • Question that the amendment be made, put and negatived.

Main Question put and agreed to.

Recommendation (v): • "That the Committee wishes to recommend that the House do direct for the auditing of the Nigerian National Petroleum Corporation (NNPC) to determine its solvency. This was as a result of plethora of claims of indebtedness and demands for payments by Nigerian National Petroleum Corporation (NNPC)'s creditors which, if not well handled, will not only affect the entire economy of Nigeria, but also the supply and distribution of petroleum products:

Examples: Nigeria Customs Service N46 billion Nigeria Ports Authority = N6 billion Trafigura et al = $3.5 billion" (Hon. Farouk M. Lawan - Shanono/Bagwai Federal Constituency).

Debate: • Amendment Proposed: Leave out all the words in Recommendation (v) and insert the following instead thereof: "Urge the Auditor-General of the Federation to urgently audit the accounts of the NNPC within three (3) months from the date of this report in order to determine its solvency and submit a report to the House through the Public Accounts Committee" iHon. Samson Osagie - OrhionmnonlUhunwode Federal Constituency).

Question that the amendment be made, put and agreed to.

Question on the Recommendation as amended, put and agreed to.

Recommendation (VI): "That the House should direct the Nigerian National Petroleum Corporation (NNPC) to stop any form of deduction not captured in the Appropriation Act before remittance to the Federation Accounts, and the Corporation should submit its transactions to the operational Guidelines of the Subsidy Scheme" (Hon. Farouk M. Lawan - Shanono/Bagwai Federal Constituency).

Question put and agreed to.

Recommendation (vii): "That Nigerian National Petroleum Corporation (NNPC) Retail, Independent Petroleum Marketers Association of Nigeria (IPMAN) and Major Oil Marketers Association of Nigeria (MOMAN) should be the outlets for the distribution of Kerosene to ensure availability and affordability of the product to Nigerians" (Hon. Farouk M. Lawan - Shanono/Bagwai Federal Constituency).

Question put and agreed to.

Recommendation (viii): "That the Nigerian National Petroleum Corporation (NNPC) should also refund to the Federation Account the sum of N285.098Billion being over-deductions as against Petroleum Products Pricing Regulatory Authority (PPPRA) approvals for 201 I. The Relevant Anti-Corruption Agencies should further investigate the Corporation for deductions for the years 2009 and 2010" (Hon. Farouk M. Lawan _ ShanonolBagwai Federal Constituency). j Debate: ••

Amendment Proposed: . : t In Recommendation (viii), line 3, immediately after numeric "201 I", insen the words "within three (3) months" (Hon. Ahikc Dobni-Erewa - lkorodu I Federal Constituencvs .

Question that the amendment be made, put and agreed to. • •

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Question on the Recommendation as amended. put and agreed to.

Recommendation (.x): "That as postulated earlier in this report, data provided by Nigerian National Petroleum Corporation (NNPC) and Central Bank of Nigeria (CBN) tends to suggest that for 2009. 2010, and 201!, Nigerian National Petroleum Corporation (NNPC) deducted subsidy payments from two different accounts. It is the recommendation of this Committee that Relevant Anti-Corruption Agencies conduct thorougb investigations into this matter and where it is established that double withdrawals were made, the extra amounts should be paid back to the Treasury and those involved prosecuted" (Hon. Farouk M. Lawan - Shanono/Bagwai Federal Constituency).

Question put and agreed to.

Recommendauon (x): "That the Management and Board of the Nigerian National Petroleum Corporation (NNPC) should be completely overhauled and all those involved in the following infractions be further investigated and prosecuted by the Relevant Anti-Corruption Agencies:

(a) Payment of 111285.098 Billion in excess of the Petroleum Products Pricing Regulatory Authority (PPPRA) recommended figure for 2011;

(b) Subsidy deductions of 111310,414,963,613 for kerosene against a Presidential Directive; • (c) Direct deductions from funds meant for the Federation Account in contravention of Section 162 of the Nigerian Constitution;

(d) Illegal granting of price differential (discounts) of crude oil price per barrel to Nigerian National Petroleum Corporation (NNPC) to the tune of 111108.648Billion from 2009-2011" (Hon. Farouk M. Lawan - ShanonolBagwai Federal Constituency).

Question put and agreed to.

Recommendation (x.): "That the relevant Anti-Corruption Agencies should carry out a due-diligence investigation to determine the total demurrage payments and outstanding incurred by Nigerian National Petroleum Corporation (NNPC) for the period 2009 -2011" (Hon. Farouk M. Lawan - ShanonolBagwai Federal Constituency).

Question put and agreed to.

Recommendation (xi.): "That under the Petroleum Support Fund (PSF) Scheme, importers especiaJly Nigerian National Petroleum Corporation (NNPC) should be mandated to patronize Nigerian Flagged vessels provided they produce the standard safety and sea-worthiness certificates in tune with international best practices" (Hon. Farouk M. Lawan - Shanono/Bagwai Federal Constituency).

Question put and agreed to.

Recommendation (xiii): "That all the payments which the Petroleum Products Pricing Regulatory Authority (PPPRA) made to itselffrom the Petroleum Support Fund (PSF) account in excess of the approved administrative charges which were due to it under the Template should be recovered and paid back into the Fund. The officials involved in this infraction should be further investigated/prosecuted by the relevant Anti-Corruption Agencies. These confirmed illegal payments were the sum of 111156.455Billion in 2009, and the sum of 111155.824 Billion in 2010, a total sum of 111312,279 Billion" (Hon. Farouk M. Lawan - Shanono/Bagwai Federal Constituency).

Question put and agreed to;

Recommendation (xiv): "That all staff of Petroleum Products Pricing Regulatory Authority (PPPRA) and Department of Petroleum Resources (DPR) involvqd in the:

(a) .processing of Applications by importers, and ,

786 Tuesday, 24 April, 2012 No. 94

(b) verification, confirmation and payment for imported products by Importers and Nigerian National Petroleum Corporation (NNPC) should be investigated/prosecuted by Anti-Corruption Agencies for negligence, collusion and fraud" (Hon. Farouk M. Lawan - Shanono/Bagwai Federal Constituency).

Debate: .

Amendment Proposed: Insert a new Recommendation (xiv) (2) as follows: "Urge the PPPRA to publish hencefortb the Petroleum Support Fund (PSF) accounts on quarterly basis to ensure transparency and openness in the subsidy regime" (Hon. Aminu Shehu Shagari - Yabo/Shagari Federal Constituency) .

Question that the amendment be made, put and agreed to.

Question on the Recommendation as amended, put and agreed to.

Recommendation (xv): "That the Executive Secretaries of the Petroleum Products Pricing Regulatory Authority (PPPRA) who were the accounting officers, and under whose watch these abuses were perpetrated that led to the Government losing billions of naira, should be held liable. Therefore, we strongly recommend that those who served as Executive Secretaries of Petroleum Products Pricing Regulatory Authority (PPPRA) from January 2009 to October 2011 should be furtber i""estigated/prosecuted by relevant Anti-Corruption Agencies. This should aJso include GM Field Services, ACDO/Supervisor-Ullage Team I, and ACDO/Supervisor-Ullage Team 2 within the same period, for their roles in the management of the Ullaging under the subsidy scheme" (Hon. Farouk M. Lawan - Shanono/Bagwai Federal Constituency).

Question put and agreed to.

Recommendation (XVI): "That the Chairman of the Board of Petroleum Products Pricing Regulatory Authority (PPPRA) from 2009 - 20 II, and the entire Members of the Board during the period are hereby reprimanded and their decision which opened the floodgate for the Bazaar is condemned in the strongest terms" (Hon. Farouk M. Lawan - ShanonolBagwai Federal Constituency).

Debate:

Amendment Proposed: In Recommendation (XV!), line 3, immediately after the words "strongest term" insert the following words: "and they should be prosecuted without further delay" (Hon. Musa Sarkin Adar - Goronyo/Gada Federal Constituency) .

Question that the amendment be made, put and agreed to.

Question on the Recommendation as amended, put and agreed to,

Recommendation (xvi!): "That it is hereby recommended that Mr President should reorganize the Ministry of Petroleum Resources to make it more effective in carrying out the much needed reforms in the oil and gas sector" (Hon. Farouk M. Lawan - Shanono/Bagwai Federal Constituency).

Debate:

Amendment Proposed: Leave out Recommen

Question that the amendment be made, put and negatived.

Main Question put and agreed to. •

No. 94 Tuesday, 24 April, 2012 787

Recommendation (xviiI): "That given the large and complex nature of the Ministry of Petroleum Resources, the Committee recommends that two ministers should be appointed to take charge of the upstream and downstream" (Hon. FaroukM. Lawan - Shanono/Bagwai Federal Constituency).

Debate:

Amendment Proposed: Insert a new Recommendation (xviiI) (b) as follows: "That the House do amend the NNPC Act to cause the Ministry of Petroleum Resources to cease to be statutory Chairman of the Board of NNPC" (Hon. Eziuche C. Ubani - Obingwa/Osisioma/Ugwunagbo Federal Constituency) .

Question that the amendment be made, pUJ and negatived.

Main Question put and agreed to.

Recommendation (xix): "That the current template being used by Petroleum Products Pricing Regulatory Authority (PPPRA) in computing and paying Petroleum Support Fund (PSF) is full of in-built prices for wastages and inefficiencies (e.g. Lightering exercise, demurrage) that could be plugged to save the Nation's scarce resources. We therefore recommend the revision of the template" (Hon. Farouk M. Lawan ~ Shanono/Bagwai Federal Constituency) ..

Question pUJand agreed to.

Recommendasion (xx): "That henceforth the Petroleum Products Pricing Regulatory Authority (PPPRA) margin of error on the payment Template for ascertaining allowable volumes on imported products should not be more than +1-5% as against the current +1-10 %" (Hon. Farouk M. Lawan - Shanono/Bagwai Federal Constituency).

Question pUJand agreed to.

Recommendation (XXI): "That the Petroleum Products Pricing Regulatory Authority (PPPRA) should provide the Nigerian Navy and Nigeria Maritime Administration and Safety Agency (NIMASA) advance copies of allocation and vessel arrival notification documents to enable the Navy monitor, track and interdict vessels seeking to avoid Naval certification" (Hon. Farouk M. Lawan - Shanono/Bagwai Federal Constituency).

Question put and agreed to.

Recommendation (xxiI): "That the Executive Secretary of Petroleum Products Pricing Regulatory Authority (PPPRA) 2009 - February, 2011 should be investigated and punished for the official recklessness he exhibited in the implementation of the Board decision to reverse the qualification for participation in the scheme. The allocation/approvals to import products given to thirty-five (35) Companies before their formal registration with Petroleum Products Pricing Regulatory Authority (PPPRA) testify to this. Companies that lack the required competence and expertise to import petroleum products and even those who did not meet up with the agreed standards were also awarded large chunks of the allocation, an act that culminated in huge loss of resources to the nation. Many Companies under his watch who had neither depots nor through-put agreement were allowed to participate in the Scheme contrary to the revised eligibility guidelines" (Han. Farouk M. Lawan - Shanono/Bagwai Federal Constituency) .

Debate: ~ ~ Amendments Proposed: , • (t) Leave out Recommendation (xxii) (Hon. Abubakar Momoh - Etsako Federal Constituency).

Question that the amendment be made, put and negatived.

~. •

788. Tuesday, 24 April, 2012 No. 94

(ii) In Recommendation (xxi!), line 2, leave out the word "punished" (Han. Emeyese Akpodiogaga - Ethiope Federal Constituency).

Question that the amendment be made, put and negatived. •

(iii) In Recommendation (xxi!), line 2, immediately after the words "investigated and", leave out the word "punished" and insen the word "prosecuted" instead thereof tHon. Abtodun Awoleye =Ibadan NOl1h Federal Constituency).

Question that the amendment be made, put and agreed to.

Question on the Recommendation as amended, put and agreed to.

Recommendation (xxiii): "That the practice whereby Petroleum Products Pricing Regulatory Authority (PPPRA) as a regulator in the petroleum downstream sector being supervised by the Ministry of Petroleum Resources whose Minister is the Chairman of the Board of Nigerian National Petroleum Corporation (NNPC) (a major importer/participant in the Petroleum Support Fund (PSF) scheme) negates the principles of checks and balances and international best practices.

The Committee therefore recommends that the regulatory capacity of Petroleum Products Pricing Regulatory Authority (PPPRA) be strengthened and the National Assembly should commence the process of amending the Act to make the Agency autonomous" (Hon. Farouk M. Lawan - Shanono/Bagwai Federal Constituency).

Debate:

Amendment Proposed: Leave out all the words in the second paragraph of the Recommendation and insert the following instead thereof: "The Minister of Petroleum Resources in her capacity as a Minister supervising the NNPC should be removed" tHon. Jagaba Adams Jagaba - Kachia/Kagarko Federal Constituency).

Question that the amendment be made, put and negatived.

Main Question put and agreed to.

Recommendation (xxiv): "That the Petroleum Products Pricing Regulatory Authority (PPPRA) should, within two weeks of the adoption of this Report, conduct a performance assessment of all Companies involved in the Petroleum Support Fund (PSF) scheme and publish such reports" (Hon. Farouk M. Lawan - Shanono/Bagwai Federal Constituency).

Question put and agreed to.

Recommendation (xxv): "That the Committee is firm in its view that if any petroleum product is deserving of subsidy, House Hold Kerosene (HHK) should enj oy a pride of place. It therefore recommends the inunediate reinstatement of subsidy for Kerosene not later than second quarter, 2012 at pump price of 1150 per Litre" (Hon. Farouk M. Lawan - Shanono/Bagwai Federal Constituency).

Debate:

Amendments Proposed: (i) Leave out Recommendation (xxv) (Hon. Friday ltulah - Esan NOl1h East/South East Federal Constituency) .

-.;. - ~- , Question that the amendment be made, put and negatived.

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No. 94 Tuesday. 24 April, 2012 . 789

(it) Leave out all the words in Recommendation (xxv) and insert instead thereof as follows: "Urge the Federal Government to publish to Nigerians the sources of imported, PMS, the price from originating countries and the actual landing cost of PMS with a view to determining whether prices is actually deserving of any subsidy as being claimed" (Hon. Abiodun Abubu-Balogun - Ogun Watersidelljebu North/Ijebu East Federal Constituency).

Question that the amendment be mode, pta and negatived.

(iii) In line 2, immediately after the word "should", leave out the words "enjoy a pride of place" and insen the words "be a priority" instead thereof (Hon. Gambo Musa Dan-Musa - Safana/Dan-Musa/Batsari Federal Constituency).

Question that the amendment be mode, put and agreed to.

Question on the Recommendation as amended, put and agreed to.

Recommendation (XXVI): "That the Committee recommends that the sum of /'<1557.70Billion should be provided for as Subsidy in the 2012 Appropriation Act, while the sum of /'<1249.006B should be provided as subsidy for House Hold Kerosene (HHK) (Kerosene) ;

Evidently, 445,000 bpd allocatiott to Nigerian National Petroleum Corporation (NNPC) is sufficient to provide the nation with 40 MLPD Premium Motor Spirit (PMS), 10 MLPD House Hold Kerosene (HHK). 8.97 MLPD Automotive Gas Oil (AGO), 0.62 MLPD LPG and 2.31 MLPD of .FO at the current Nigerian National Petroleum Corporation (NNPC) refining capacity of 53%. It is only Automotive Gas Oil (AGO) that daily consumption in full could not be achieved. Since Automotive Gas Oil (AGO) has been deregulated, other marketers can make up for the 3.03 MLPD shortfalls" (Hon. Farouk M. Lawan - ShanonolBagwai Federal Constituency).

Question put and agreed to.

Recommendation (xxvii): "That the Committee recommends that Federal Inland Revenue Service (FIRS) should follow up on the companies listed earlier to pay their taxes with due penalties in line with the provisions of the Companies Income Tax Act" (Hon. Farouk M. Lawan - ShanonolBagwai Federal Constituency).

Debate:

Amendment Proposed: In Recommendation (xxvii), line 3, inunediately after the words "Tax Act", insert the words "within three (3) months" (Hon. Bimbo Daramola - EkiIi Nortn Federal Constituency).

Question that the amendment be mode, put and agreed to.

Question on the Recommendation as amended, put and agreed to.

Recommendation (xxviiI): "That the Petroleum Support Fund (PSF) Guidelines should be revised to make Tax compliance a mandatory pre-qualification requirement for all participants under the Scheme" (Hon. Farouk M. Lawan - Shanono/Bagwai Federal Constituency).

Debate:

Amendment Proposed;. '~.' ~~~,,!' .~~ . Leave out Recommendaiion (xxviii) (Hon. Akpan Micah Umoh -lkotA/fISi ,. Federal Constituency). Question that the amendment be mode, put and negatived.

Main Question pur and agreed to. •

790 Tuesday, 24 April, 2012 No, 94

Recommendation (xxix): "That Marketers who obtained FOREX but did not import petroleum products should be referred to the relevant Anti-Corruption Agencies with a view to verifying what thel used the FOREX for.

THOSE WHO OBTAINED FOREX BUT DID NOT IMPORT PETROLEUM PRODUCTS

SINo. Names of Marketers 2010 2011 s $ I. BUSINESS VENTURES NIG. LTD 22,927,339.96 2. EAST HORIZON GAS CO. LTD 20,735,910.81 3. EMADEB ENERGY 6,606,094.30 4. POKAT NIG. LTD 3,147,956.19 5. SYNOPSIS ENTERPRISES LTD 51,449,977.47 6. ZENON PET & GAS LTD 232,975,385.13 7. CARNIVAL ENERGY OIL LTD 51,089.57 8. CROWNLlNES 4,756,274.94 9. ICE ENERGY PETROLEUM TRADING LTD 2,131,166.32 10. INDEX PETROLEUM AFRICA 6,438,849.64 II. RONAD OIL & GAS W/A 4,813,272.00 12. SERENE GREENFIELD LTD 4,813,360.75 13. SUPREME & MITCHELLES 16,947,000.00 14. TRlDAX ENERGY LTD 15,900,000.00 • IS. ZAMSON GLOBAL RES. 8,916,750.00 Total 337,842,663.86 64,767,763.22 tHon. Farouk M. Lawan - Shanono/Bagwai Federal Constituency). Debate:

Amendments Proposed: (i) In Recommendation (xxix), leave out items (5) and (6) (Hon. Farouk M. Lawan - ShanonolBagwai Federal Constituency).

Question that the amendment be made, put and agreed to.

(ii) Insert a new Recommendation (xxu) (b) as follows: "That the companies involved should be blacklisted as they can be a termed to be economic sabatour; as we already heard about round tripping" (Hon. Sunday Adepoju - Ibarapa Easuldo Federal Constituency).

Question that the amendment be made, put and negatived.

Question on the Recommendation as amended, put and agreed to.

Recommendation (xxx): "That the following Companies that participated in the Scheme and refused to appear before the Committee and never submitted the required documents as was repeatedly announced during the hearing are to refund the various sums against their names. It is believed that these companies deliberately refused to appear because they had something to hide. The relevant Anti-Corruption Agencies should ensure full recovery:

SINo. Name of Company Amount (N) 1. Mut-Hass Petroleum Ltd \'\02,084,041.30 2. Nepal Oil and Gas Service 2,353,911 ,979.10 3. Oilbath Nigeria 1,019,644,138.97 4. Techno Oil.Ltd 1,036,514,387.08 5. Somerset Energy Services 3;015,221,487.94 6. Stonebridge Oil Limited 1,784,158,258.14 7. Mobil Oil Nigeria 14,934,371,661.76 8. AX Energy Limited 1,471,969,643.31 9. CAH Resources Association Limited 1.052,466,415.28 10. Crust Energy Limited 1,192,651,581.76 11. Fresh Synergy Limited 1,4\7,029,059.70 4,687,730,540.46 •

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13. Lottoj Oil and Gas Limited 1,427,429,910.95 14. Oakfield Synergy Network Limited 988,920,219.15 15. Petro Trade Energy Limited 1,471,027,874.73 16. Prudent Energy & Service Limited 1,360,898,638. ](1' 17. Rocky Energy Limited 1,620,110,167.58 Total 41,936,140,005.31 (Hon. Farouk M. Lawan - Shanono/Bagwai Federal Constituency) .

Debate:

Amendment Proposed: In Recommendation (.ox), line 3, innnediately after the word "hearing", leave out all the other words and insert instead thereof as follows: "should be compelled by the Ad-hoc Committee within two (2) weeks to account for monies paid to them" (Hon. Toby Okechukwu - Aninri/Awgu/Oji Federal Constituency).

Question that the amendment be made, put and agreed to.

Question on the Recommendation as amended, put and agreed to.

Recommendoiion (xxxi): • "That payments for Premium Motor Spirit (PMS) with effect from the second quarter of 2012 should be based on certified truck outs at depots confirmed at the retail outlets and no longer on discharges from vessels into tank farms. Consumption should be defined in a way to exclude what is Imported but only what is put in the tank" (Hon. Farouk M. Lawan - Shanono/Bagwai Federal Constituency).

Question put and agreed to.

Recommendation (xxxi.): "That the markets of opportunity situated within Nigerian territorial waters which are designated "offshore Cotonou" or "offshore Lome" to qualify for FOREX payment and to evade payment of appropriate levies, dues and taxes to the Nigerian government should be discontinued forthwith" (Hon. Farouk M. Lawan - Shanono/Bagwai Federal Constituency).

Question put and agreed to.

Recommendnlion [xxxiii}: "That a Marine Transportation System should be put in place that is safe, secure, reliable, cost effective and efficient to reduce the present high cost of doing business in Nigeria" (Hon. Farouk M. Lawan - Shanono/Bagwai Federal Constituency).

Debate:

Amendment Proposed: Leave out Recommendation (xxxiii; (Hon. Orowosoge I. Abiose - Ekiti South WestlIkerelOrunIIse Federal Constituency). .

Question that the amendment be made, put and negatived.

Main Question put and agreed to.

Recommendauon (xxxiv): "That any Importation without permit or where the difference is above approved quota should not be entitled to any amount on the Ternp~" (Hon. Farouk M. Lawan - ShanonolBagwai ,e1eral C~tituency) .. r Question put and agreed to.

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Recommendation (xxxv): "That it is strongly recommended that Marketers without storage facilities and retail outlets should be excluded from participating in the Petroleum Support Fund (PSF) Scheme as this will end the bazaar that constituted a serious drain on the nation's economy and created room for abuses" (Han. Farouk M. Lawan - ShanonolBagwai Federal Constituency).

Question put and agreed to.

Chairman to report progress.

(HOUSE IN PLENARY)

Mr Deputy Speaker in the Chair, reported that the House in Committee of the Whole considered the Report of the Ad-hoc Committee on the Monitoring of Subsidy Regime and approved Recommendations (i) -tiv), amended Recommendation (v), approved Recommendations (vi) - (vii), amended Recommendation (vii!), approved Recommendations (ix) - (xiii), amended Recommendation (xiv), approved Recommendation (xv), amended Recommendation (xvi), approved Recommendations (xvii) - (xxi), amended Recommendation (xxii), approved Recommendations (xxiii) - (zrrv), amended Recommendation (xxv), approved Recommendation (XXlll), amended Recommendation (xxvii), approved Recommendation (xxviii), amended Recommendations (xxix) - (xxx), approved Recommendations (xxxi) - (xxxv) and deferred further consideration till the next Legislative Day,

Question that the House do adopt the Report of the Committee of the Whole, put and agreed to,

7. Adjournment: That this House do adjourn till Wednesday, 25 April, 2012 at 11.00 a.m. (Hon. Leo Ogor - Deputy House Leader).

The House adjourned accordingly at 3.17 p.m.

Aroinu Waziri Tambuwal Speaker

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