The controversial fuel subsidy claims as contained in the 2015 Supplementary Budget presented to the National Assembly by President Muhammadu Buhari has risen from N413 billion to N521 billion.
The original N413 billion subsidy claim included N120.552billion outstanding claims from 2014 and N292.8 billion to cover claims from January to September.
But Permanent Secretary, Ministry of Petroleum Resources, Mrs. Jamila Soara, who represented the Minister of State, Dr. Emmanuel Ibe Kachikwu, told the Senate Committee on Appropriation that is considering the Supplementary Budget that another N108 billion will be required to cover fuel subsidy for October to December.
The permanent secretary told the committee that Kachikwu was in Lagos trying to convince major oil marketers to start importing products.
Major oil marketers import 52 per cent; PPMC imports 48 per cent for local consumption.
She noted that the issue of subsidy payment was being handled by the Federal Government.
Asked why the supplementary oil subsidy budget did not cover October to December, Mrs. Soara said her ministry had drawn the attention of the Budget Office to the fact that the proposal for the last quarter had not really been captured.
The outstanding subsidy claim for October to December, she said, is N108 billion.
The N108 billion increment will shoot up the supplementary budget proposal earlier submitted to the National Assembly from N465.69 billion to N574 billion.
Minister of Budget and National Planning, Senator Udoma Udo Udoma, led other ministers to a budget defence.
The committee asked the Ministries of Petroleum, Finance, Budget and National Planning to reconcile the supplementary budget to capture the N108 billion required to cover subsidy claims for October, November and December.
Committee members frowned at what they described as “half measure approach to fuel subsidy crises in the country”.
The chairman, Senator Danjuma Goje, expressed dissatisfaction with the way the ministry is treating the subsidy issue.
Goje said: “It is obvious that there is no synergy between the Budget Office and the Petroleum Ministry.
“Why is it that we have to leave three months in a year without making provisions for the subsidy?
The committee wondered why N413 billion would be provided for the payment of subsidy claims to oil marketers while nothing was provided in the supplementary budget for the payment of subsidy claims to NNPC.
The committee noted that the apparent deliberate omission would create a loophole likely to be exploited by the NNPC to source its subsidy claims directly from the money it generates.
A member of the committee, Senator Bassey Albert Akpan, asked: What is the subsidy due to NNPC?
“It appears that the difference between this figure we got through intelligence report and what you have submitted as due to major oil marketers is the one due to NNPC.
The Accountant General of the Federation, Ahmed Idris, who was at the budget defence, said about N274.290 billion of the N557.378 billion capital budget for 2015 had been released.
He said: “The capital budget, which is the main focus of the committee, we appropriated N557.378 billion out of which we made releases to agencies.
“First quarter, we released N112.039 billion, second quarter N88.792 billion.
“There were also some capital supplementation amounting to N73.459 billion. In total, what has been released so far is N274.290 billion.”
The Minister of Defence, Musa Dan Ali, who came with some service chiefs, told the committee that the Chief of Army Staff, Maj. Gen. Tukur Burutai, could not attend the meeting because he travelled to Yola, Adamawa State, where there was an insurgency attack on Sunday.
The Chief of Air Staff, Air Vice Marshall Abubakar Sidique, he said, was in Pakistan, where he is attending a seminar in air operations.
The minister added: “I appreciate the immense support by the National Assembly in the fight against insurgency
“To achieve the desired result, additional funding is required.
“The sum of N29,958,865,912 is appropriated for operation Zaman Lafia Dole.
“N17,468,992,649 is meant for operational allowance and cash allowance for soldiers on the field.
“We have also requested for N8,141,434,769 for logistics support of the Air Force.
“We also have an outstanding balance from the 2015 budget, for the second quarter, which amounts to N4,348,129 billion.
“Another salary amount is requested because of the recent recruitment to make up what we have in the field.
“We require N1,987,956,475 as well as additional salaries for soldiers who were not included last year and the short officers commanding the soldiers who were recruited, amounting to N420,365,830.
“As partners in progress against insurgency, I pray this Senate to approve N29,958,865,512 for operation Lafia Dole and other outstanding bills.”
The minister also noted that the essence of the deadline given to the military to end insurgency was just a time line.
He said the fight against insurgency is in phases.
According to him, “the first phase, which we have achieved, was to clear the insurgents from taking hold of any part of our country.
“Fighting insurgency cannot be achieved within a day. All we are working for is to ensure maximum security in our country.”
The minister requested the committee to persuade the Central Bank of Nigeria (CBN) to grant waiver to soldiers on the field concerning BVN registration.
He said: “Majority of our staff on the field cannot access their money due to lack of BVN.
“I wish the Senate can assist us so that soldiers can get extension through the CBN as the families of our soldiers are suffering.”
Goje urged the CBN to grant extension to Armed Forces, especially those on the war front so that their families do not suffer.
CBN Deputy Governor (Operations) Suleiman Barau told the committee that the Apex Bank had approved the request.
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