Senate steps down bill proposing N5 fuel levy

THE Senate, on Thursday, withdrew the Road Fund Bill seeking the imposition of a N5 levy on every litre of petroleum products for further legislative scrutiny.

The bill was slated for passage, on Thursday, but apparently reacting to the mood of the chamber, Deputy Senate President, Ike Ekweremadu, who presided, advised that it be withdrawn.

The National Road Fund Bill is seeking a pool of funds that will aid the maintenance and reconstruction of roads across the country.

The Kabiru Gaya-led Committee on Works had proposed that toll fees not exceeding 10 per cent of any revenue be paid as user charge per vehicle on any designated federal road.

Roads under the public private partnership arrangement are, however, exempted from the charge.

The committee also recommended that there should be an inter-state mass transit user charge of 0.5 per cent deductible from fares paid by passengers to commercial mass transit operators on inter-state roads.

The report stated that: “It is our hope that this legislation, when passed, will contribute positively to the economic growth of the nation and impact positively on the lives of Nigerians and deliver a road sector that will be a model for other countries.”

Many senators rose against the proposals, on Thursday, as the report was presented by Senator Gaya, prompting the suggestion by Ekweremadu that the bill be withdrawn.

While presenting the report, Gaya said the negative media reports on the bill were uncalled for.

“There were media reports last week that we are increasing fuel price by N5. That is not true. We intend to remove the N5 from the current price of N145 per litre. If this bill is passed, the government will realise about N94 billion per annum,” he said.

In a last-minute effort to save the bill, Gaya said the bill would go for further consultations, adding that there had never been a proposal for fuel price increase.

Deputy Senate Leader, Bala Ibn Na’Allah, who supported Gaya, added that there was the need to suspend Senate’s procedure and explain to Nigerians.

“If we do not do this, there will be trouble. Nigeria will think we want to increase fuel price,” he said.

Senate Leader, Senator Ahmad Lawan, who led the offensive against the bill, said the proposal would not work, adding that the bill be stepped down.

“The report of Gaya will not work. When we get to the bridge, we will cross it,” he said.

Senate Minority Leader, Godswill Akpabio, who spoke along the line of the Senate Leader, also said the proposal was offensive.

“I want to align myself with the submissions of other speakers. I have reservations about the bill. I do not want the chamber to just pass a law and it will not be effective. I had an experience with the police funds when I was a governor. Throughout my time as governor, I did not get any fund,” he said.

Senator Kabiru Marafa, who also opposed the proposal, said it would further impoverish Nigerians.

“My comments are on the method of funding. The claims that the N5 charge has already been captured is not correct. Taking another N5 from refined products will add to the suffering of the people.

“This will bring untold hardship on Nigerians. We have already addressed something like this in the Petroleum Industry Governance Bill (PIGB). I oppose the recommendations,” he said.

When Ekweremadu put the question whether the report be withdrawn, almost all the senators yelled ‘aye’, including members of Committee on Works, most of who signed the original recommendations.

The Deputy Senate President, in his final remarks thereafter, said: “Senate has no intention of increasing the price of fuel. There is no ambiguity about it. What we are trying to do is to find other sources of funding road infrastructure. We do not want to impose hardship on the people of Nigeria. We want to ensure that those who voted for us have comforts in their lives.”

In another development, the Senate has raised the alarm over what it called continuous operation of fuel subsidy regime by the Federal Government and the Nigerian National Petroleum Corporation (NNPC).

Senator Marafa, who led the Senate Committee on Petroleum Resources (downstream), made the claims on the floor of the Senate.

According to him, contrary to claims made by the Federal Government that the fuel subsidy regime had been abolished, NNPC was still making secret subsidy payments.

“Even the price of N145 is not realistic. The NNPC is still operating the subsidy regime. NNPC is now the only body importing petroleum products into the country. You cannot import petroleum products into the country right now with the current trend. We are investigating this subsidy payment by the NNPC,” he said.