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HOUSE of REPRESENTATIVES FEDERAL REPUBLIC of NIGERIA VOTES and PROCEEDINGS Tuesday, 24 April, 2012 1

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HOUSE of REPRESENTATIVES FEDERAL REPUBLIC of NIGERIA VOTES and PROCEEDINGS Tuesday, 24 April, 2012 1 , • • FOURTH REPUBLIC 7TH NATIONAL ASSEMBLY FIRST SESSION No. 94 781 • HOUSE OF REPRESENTATIVES FEDERAL REPUBLIC OF NIGERIA 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. PRINTED BY NA TfONAL ASSEMBL Y PRESS, ABUJA 782 Tuesday, 24 April, 2012 No. 94 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.
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