The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) says the fuel subsidy removal by President Bola Ahmed Tinubu will relieve the country of huge resources.
The chairman of RMAFC, Mr Mohammed Bello Shehueho, in a statement on Thursday, said the removal became necessary following the Nigeria National Petroleum Company limited (NNPCL)’s withdrawal from contributing to the Federation Account due to the fuel subsidy regime which is characterised by opaqueness and other ambiguities.
“As one of the fourteen (14) Federal Executive Bodies established by section 153 (1) (n) and empowered by paragraph 32 (a) and (c) of part 1 of the Third Schedule of the 1999 Constitution (as amended), RMAFC has the constitutional mandate to monitor the accruals to and disbursement of revenue from the Federation Account and also advise federal and state governments on fiscal efficiency and methods by which their revenue can be increased.
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“The country can no longer sustain fuel subsidies whose demerits far outweigh its benefits to the citizenry. It is saddening to note that since 1st January, 2022 to date, the Nigeria National Petroleum Company Limited (NNPCL) has not been contributing to the Federation Account due to the claimed subsidy payments.
“The total amount withheld by the NNPCL as claimed subsidies for this period amounted to N8,480,204,553,608.13 as reported by the Office of the Accountant General of the Federation(OAGF) which is yet to be reconciled by the RMAFC, OAGF, and NNPCL,” he said
He however urged the new administration to work out strategies that would cushion the attendant effects of the new policy, adding that deterrent measures should be earnestly taken to prosecute all the economic saboteurs who have contributed to our national adversity in accordance with the extant laws of the federation.
