The House of Representatives Committee on Petroleum Resources has announced its intention to carry out a comprehensive audit of the subsidy regime for Premium Motor Spirit, commonly known as petrol, in Nigeria.
This announcement was made by Rep. Ikeagwuonu Ugochinyere, the Chairman of the committee, during its inauguration in Abuja on Friday.
The committee outlined its legislative priorities, which include ensuring energy security, enhancing professionalism in the petroleum sector, and driving economic transformation.
According to Ugochinyere, the committee intends to focus on fostering accountability, implementing institutional reforms, and working on revenue recovery and generation.
He stated, “The committee’s specific objective is to assist the Federal Government in recovering the $20 billion revenue lost in the sector.”
The committee will also emphasize the prompt remittance of federal revenues and the recovery of unremitted funds.
Ugochinyere stated that addressing the challenges faced by Nigerians due to the removal of the petrol subsidy is a top priority for the committee.
They also plan to investigate the subsidy beneficiaries, scrutinize loan transactions, and review loans related to crude oil.
The committee will examine the direct sales, direct purchase method, which involves using crude oil for importing refined petrol and other associated value chains and collaboration with relevant committees in the upstream, mainstream, gas, and petroleum training fund sectors, to achieve its objectives.
The committee also plans to review the Petroleum Industry Act, assessing the actions taken before and after its implementation, the status of national assets, and the achievement of energy security.
It will also examine competition in the downstream sector, as originally intended in the PIA, and address the issue of the Nigerian National Petroleum Corporation Limited being the primary petrol importer, contrary to the PIA’s vision of diverse downstream operators.
‘’The committee will also ensure adequate supply of domestic crude to achieve energy security,’’ Ugochinyere said
Ugochinyere expressed confidence in the committee’s ability to fulfill its mandate and called on stakeholders in the petroleum sector to cooperate in carrying out its functions and embrace positive changes.
