Fuel Subsidy: FG, States Set For Showdown Over Planned N950bn FAAC Deductions
The Federal Government and the 36 states are set for a showdown over the planned deduction of N950bn from the allocation due to the states in 2022.
To this end, it was learnt that the commissioner for finance in all 36 states are expected to meet in the coming days.
President Muhammadu Buhari, on Tuesday, transmitted the 2022 Appropriation Act (Amendment) Bill to the National Assembly, seeking the approval of the federal parliament for a supplementary budget with estimates totalling N150bn.
Buhari also sought approval for another N2.557tn to extend payment for subsidy on petrol.
President of the Senate, Ahmad Lawan; and Speaker of the House of Representatives, Femi Gbajabiamila, read Buhari’s letter dated February 10, 2022, in plenary.
Buhari’s letter read in part, “An additional provision of N2.557tn will be required to fund the petrol subsidy in 2022. Consequently, the Federation Account (main pool) revenue for the three tiers of government is projected to decline by N2tn, while FGN’s share from the account is projected to reduce by N1.05tn.”
This implies that about N950bn would be deducted from the accounts of the states and local governments.
The federal government had proposed an 18-month extension for the implementation of the petroleum industry law to cater for subsidy shortfall.
The Chairman, Forum of Commissioners of Finance and Benue State Finance Commissioner, David Olofu, on Tuesday, said that states of the federation will continue to have it tough with the decision to redirect huge amount of money meant for states to subsidy payment.
Olofu who analysed the opaque nature of the NNPC said that the country is in big trouble if Nigerians continue to allow the malpractices going on in the oil sector.
He said that with the manner the oil industry is being run under the present administration it shows that the institution (NNPC) is above the country and more powerful than the government.
Olofu also slammed the National Assembly which he said has constitutional oversight on the NNPC but had remained silent.
“The President is a minister of petroleum and there is nothing happening in the oil industry that he doesn’t have his approval.
“So we expect that he (President) should show some transparency in the operation of NNPC, particularly, the subsidy because he said during his campaign that subsidy in the country is a scam so why will he be president now and condone it?
“There is nothing needed to be said that has not been said either by the government of the day or opposition, it is now a national matter.”
When asked if states are not going to have it tough with the planned deductions from FAAC, the commissioner said, “States have always been having it tough and they will continue to have it tough”.
To get out of the logjam, Olofu admonished every Nigerian to now showing interest in what is happening in the oil industry, saying, “The National Assembly has oversight function but their silence over this issue is suspect.”
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