Senate Extends 2021 Budget Implementation to May 31

•Stop IOCs evading tax from lifting crude oil, committee tells NUPRC 

•House moves to address increase in price of diesel, gas 

•Grid collapse: Lawmakers urge FG to upgrade power infrastructure, seek alternative sources

Deji Elumoye, Sunday Aborisade and Udora Orizu in Abuja

The Senate yesterday extended the implementation of the 2021 Appropriation Act from March 31st to May 31st, 2022.

The extension was approved following the consideration of a bill to amend the 2021 Appropriation Act.

Equally, the Senate Committee on Finance yesterday directed the Nigerian Upstream Petroleum Regulatory Commission, (NUPRC) to stop international oil companies evading taxes from lifting crude oil from Nigeria.

On the other hand, the House of Representatives yesterday mandated its Committees on Petroleum Resources (Downstream), (Upstream) and Gas Resources to investigate the astronomical increase in the price of diesel and gas, with a view to ensuring that reasonable prices were fixed to alleviate the sufferings of Nigerians.

This is just as lawmakers at the green chamber yesterday urged the federal government to take urgent steps to address the epileptic power supply in the country which they argued had brought untold hardship on Nigerians.

However, the Senate had before the consideration of an amendment to the 2021 Appropriation Act, suspended Rule 78 (1) of the Senate Standing Orders 2022 (as amended), to enable the upper chamber to expeditiously introduce and pass the bill.

The bill was read yesterday for the first, second and third time after the suspension of Rule 78(1).

The bill was sponsored by the Senate Leader, Senator Yayah Abdullahi (Kebbi North).

Abdullahi, who led the debate, recalled that prior appropriation acts in the past were passed mid-year, with their implementation usually extended to the following year.

The lawmaker, noted that in previous appropriation acts, the extension were usually covered by a Clause, in line with the provisions of Section 318 of the Constitution of the Federal Republic of Nigeria, that the law runs for a period of 12 months, starting from the date it comes into effect.

He, however, observed on the contrary that Clause 12 of the provisions of Section 318 of the Constitution provides that the 12-month period starts from the 1st day of January to 31st day of December, 2021.

He recalled that the 2022 Appropriation Act was amended to extend the implementation year from 31st December, 2021 to 31st March, 2022.

Abdullahi, explained that the extension of the budget period became imperative in view of the need to complete ongoing projects nearing completion.

He said, “As you are aware, the 2021 virement of the aggregate sum of N276 billion was approved for several MDAs by the National Assembly in December, 2021 along with 100 per cent release of the 2021 capital budget of the MDAs.

“A significant portion of the releases to the MDAs has been utilised following the extension to 31st March, 2022.

“In view of the critical importance of some key projects nearing completion, it is expedient to grant further extension of the expiration clause to avoid compounding the problem of abandoned projects given that some of the projects were not provided for in the 2022 budget hence the need to extend the implementation year form 31 March, 2022 to 31st May, 2022.”

The bill to amend the 2021 Appropriation Act was, thereafter, passed sequel to its consideration by the Committee on Supply.

Meanwhile, a total of three bills yesterday scaled second reading on the floor.

The bills seek to establish the National Industrial Technology Park; the Federal College of Agriculture Ise-Orin, Ekiti State; and Federal University of Agriculture Ogoja, Cross River State.

The bills were sponsored by Senators Ibikunle Amosun (Ogun Central), Biodun Olujimi (Ekiti South) and Agom Jarigbe (Cross River North).

The bills after consideration were referred by the Senate President, Ahmad Lawan, to the Committees on Trade and Investment; and the Joint Committees on Tertiary Institutions and Agriculture and Rural Development.

The Committees were all given four weeks to report back to the upper chamber.

Stop IOCs evading tax from lifting crude oil, Senate tells NUPRC

The Senate Committee on Finance has directed the NUPRC to stop international oil companies, which are evading taxes, from lifting crude oil from Nigeria. The red chamber said all the defaulting IOCs must pay the requisite tax to the Federal Inland Revenue Service (FIRS) before they would be allowed to continue their business.

The Chairman of the Senate Committee on Finance, Senator Solomon Adeola, stated this when the Chief Executive of NUPRC, Gbenga Komolafe, appeared before the panel.

He was at an interactive session with the senate committee on revenue losses in the maritime sector.

He added that from the preliminary findings of his committee, there was need for serious back duty investigations of all foreign oil companies lifting Nigeria crude oil in relation to their compliance with tax obligations according to extant laws of the land. 

He said, “The Committee is directing your commission to stop all companies lifting crude oil from Nigeria until they show evidence of tax payment as they are mandated by law to pay.

“Alternatively, the companies can do a payment on account based on estimates to continue to lift Nigeria crude oil pending a time when proper reconciliation will be done on their tax liabilities in the last ten years of operation” Senator Adeola stated.

The chairman of the committee added that only recently in 2020, an audit of just one of such foreign companies known as TeeKay Group with 14 tankers paid about $10 million  in tax liabilities to FIRS for a back duty investigation of five years adding that at least over 100 of such entities have been lifting crude oil in Nigeria without paying a dime in taxes.

“Henceforth, NUPRC unlike the way the defunct DPR operated must ensure that any firm lifting crude oil must have a tax clearance from FIRS. We are going to investigate about 100 companies lifting our crude oil without paying any taxes as there are no record of such payment with FIRS. We must recover all our revenue from this source” senator Adeola reiterated.

Adeola stated that the committee was not ruling out the existence of a cartel that may be behind this huge tax evasion in dollars stressing that at this point there should be collaboration and synergy between maritime agencies like Nigeria Ports Authority, NPA. Nigerian Maritime and Safety Agency, NIMASA, Nigeria Navy, NUPRC, NNPC and FIRS on the issue of tax revenue from the maritime sector.

House Moves to Address Increase in Price of Diesel, Gas

Meanwhile, the House of Representatives yesterday mandated its Committees on Petroleum Resources (Downstream), (Upstream) and Gas Resources to investigate the astronomical increase in the price of diesel as well as gas with a view to ensuring that a reasonable price was fixed to alleviate the sufferings of Nigerians.

The resolution of the lawmakers was sequel to the adoption of a motion sponsored by Hon. Chike Okafor, at plenary.

Moving the motion, Okafor noted that the Nigeria Mainstream and Downstream Petroleum Regulatory Authority (NMDPRA) was created in August 2021, in line with the Petroleum Industry Act with the mandate to provide effective regulatory oversight, ensure sufficient product distribution and supply at an equitable and fair price.

He also noted that almost all businesses and households in Nigeria depend on diesel-powered generators as an alternative source of electricity.

He further noted the outrageous rise in the price of Automotive Gas Oil (Diesel) as the product which used to be sold between N280 to N350 per liter three weeks ago has risen currently to above N780 per liter and still rising on a daily basis, accounting for over 115.4 percent increase within three weeks.

He warned that if the ugly trend of the increasing price of diesel was not checked, the multiplier effect would spell doom for Nigeria’s economy.

The lawmaker said, ” Concerned that diesel was deregulated in 2009 with an initial price of N100 per liter, and between 2009 till date, Nigerians have witnessed a rising percentage increase in the price of the product.

“Also concerned that the hike in the cost of diesel is alleged to be the handiwork of unscrupulous stakeholders in the industry, and is tantamount to economic sabotage, causing untold hardships for Nigerians as it will result in an increase in prices of food as well as other goods and services.

“Worried that the possible inflationary pressure envisaged from the rise in the cost of diesel could reduce consumers’ disposable income, thus making it impossible for average Nigerians to meet their basic needs.”

  Adopting the motion, the House gave the Committees six weeks to carry out the investigation and report back for further legislative action.

Grid Collapse: Lawmakers Urge FG to Upgrade Power Infrastructure, Seek Alternative Sources

Also, the House of Representatives at plenary yesterday urged the federal government to take urgent steps to address the epileptic power supply in the country which had brought untold hardship on Nigerians.

The lawmakers advised the government to upgrade power transmission and distribution infrastructure and as well seek the best alternative sources of energy to ensure steady power supply across the country.

The resolutions were sequel to the adoption of a motion of urgent public importance sponsored by Chief Whip Hon. Tahir Monguno,

Moving the motion, Monguno emphasised that electricity was a crucial enabler for industrial development and social welfare, hence it’s the backbone of development in any country.

He noted that Nigeria has 23 power generating plants connected to the National Grid and managed by Generating Companies (GENCOs), Independent Power Providers and the Niger Delta Holding Company.

He also noted that the country was endowed with oil, gas, hydro and solar resources and has the potential to generate 20,522 megawatts of electric power from the existing plants.

Monguno expressed concern that despite been so endowed, the country could only be able to dispatch around 4,000 megawatts which he said was insufficient for a country of over 185 million people.

He lamented that for some weeks, many parts of the country including major cities like Abuja had been experiencing unsteady power supply.

He said the collapse of the power grid had become a national embarrassment, adding that the increase in the electricity tariff has not brought about any improvement in power supply across the country.

In his contribution, the Deputy Minority Leader, Hon. Toby Okechukwu, urged the State Houses of Assembly to expeditiously attend to the constitutional amendment bills that devolved power generation and transmission to States.

He also urged President Muhammadu Buhari to quickly sign the legislations when transmitted to him to provide lasting solutions to epileptic power supply.

Adopting the motion, the House mandated its Committee on Power to ensure compliance.