Reps to probe ₦8.4tn allegedly withheld by NNPCL
On Wednesday, the House of Representatives instructed its Committees on Finance and Petroleum (Upstream and Downstream) to investigate reports from the Revenue Mobilisation Allocation and Fiscal Responsibility Commission, which claimed that the NNPC (now Nigerian National Petroleum Company Limited) withheld ₦8.48 trillion in petrol subsidies.
The House also emphasized the need for the investigation to address the NEITI report, which stated that the NNPC (now NNPCL) failed to remit $2 billion (equivalent to N3.6 trillion) in taxes to the Federal Government.
Additionally, the committees were tasked with verifying the total cumulative amount of unremitted revenue, including under-recovery, from petrol sales by the NNPC between 2020 and 2023.
This comes as the House approved the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper in preparation for President Bola Tinubu’s presentation of the 2025 Appropriation Bill to the National Assembly next week.
READ ALSO: Reps approve 2025 Budget, set ₦1400/$ exchange rate
The MTEF is a multi-year plan for public expenditure that sets targets for budget spending and fiscal policy, ensuring these objectives are adhered to throughout the budget process.
The Fiscal Strategy Paper (FSP), on the other hand, is a document that outlines a country’s fiscal policy and medium-term macro-fiscal framework. It plays a critical role in the annual budget process and the Medium-Term Budget Framework.
Recall that on Tuesday, November 19, 2024, President Tinubu transmitted the MTEF/FSP to the National Assembly for consideration, following the approval of the Federal Executive Council. The government set the oil benchmark for 2025 at $75 per barrel, with oil production projected at 2.06 million barrels per day. Additionally, exchange rate parameters were pegged at ₦1,400 per dollar, and the projected Gross Domestic Product growth rate is set at 6.4% per annum.
During the Committee of Supply’s consideration of the report from the Committees on Finance and National Planning and Economic Development, Deputy Speaker Benjamin Kalu, presiding over the session, expected the usual chorus of “carried” from members as he began the clause-by-clause review of the 15 recommendations. However, Minority Leader Kingsley Chinda altered the tone of the discussion, raising concerns over the proposed $75 oil benchmark.
Chinda argued for retaining the 2024 benchmark, noting that the country had surpassed it in the first quarter of the year. He stated, “Given the importance of the MTEF, I advise that we consider it thoroughly before passing it. This is one of the most important bills this parliament will pass. The recommended benchmarks for 2025, 2026, and 2027 are $75, $76.2, and $75.3 per barrel, respectively. We recommended $77.96 for 2024, and currently, it’s about $85 per barrel. In the first quarter of 2024, we exceeded $85, and it increased further. If we are recommending $75 for next year, just a month away from 2024, I suggest we retain the $77 we recommended for this year.”
He continued, “Rather than decreasing, we are reducing the benchmark. While I understand the shift toward gas-powered vehicles and the global trend away from fossil fuels, $75 may be too low.”
In response, Chairman of the House Committee on Finance, Abiodun Faleke, reassured members, describing the $75 per barrel benchmark as “responsible.”
Proofreading by Uchechi Ojo, Sub-editor at NeptunePrime.
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