Nigeria: Inquiry into Subsidies – House Committee Demands Detailed Contract Agreement between NNPC and Oil Companies


Abuja – The House of Representatives ad hoc committee investigating the subsidy scheme from 2017 to 2022 has urged all companies that have signed an agreement with the Nigerian National Petroleum Company (NNPC) on direct selling and direct purchase (DSDP) of crude oil to refine the product to submit tomorrow all relevant and detailed documents to its committee.

The President of the Ad Hoc Chamber, Mr. Al-Mustapha Aliyu said so in a public hearing yesterday.

Aliyu, also asked the companies to provide their profiles to the Business Affairs Committee before the House ad hoc committee to determine whether they really deserve the contract deal or not.

The public hearing which was nearly stalled due to the representation of the CEOs of Mocol Oil and Gas, Sahara Business Development, Matrix Energy, AA Rano among other companies involved over earlier directives that they should appear in person, later continued as company representatives took turns answering questions posed by committee members.

The first to appear before the committee was Sahara Business Development, represented by Stéphanie Useni.

Useni said Sahara Business Development was not involved in oil subsidies with the federal government.

Committee members in this regard disapproved of Sahara Business Development for submitting only the 2016 document on the contract signed with NNPC instead of another contract agreement signed from 2017 to 2021.

Representing Mocol Oil and Gas at the hearing, its director of operations, Hauwa Alfa, after revealing the list of documents that the ad hoc committee had requested from the companies involved in the investigation, declared that the company had never breached the agreement with NNPC.

For his part, Operations Manager, AA Rano, Sabiu Saidu, who represented the company, explained that AA Rano, NNPC and the international company Trafigura signed a direct sales and direct purchase contract (DSDP) agreement of 2017 to 2020.

In addition, the House of Representatives in yesterday’s plenary urged the Presidency and the Ministry of Agriculture to begin making arrangements and putting in place emergency programs to mitigate emerging food challenges.

The Chamber has mandated its agriculture committee and other relevant committees to interface with relevant ministries and agencies as well as international development partners to begin the process of establishing and implementing protocols to manage food resources and avoid food crisis.

The resolutions followed the adoption of a motion of urgent national importance sponsored by the Hon. Rimande Shawulu and Hon Solomon Bob.

Introducing the motion, Shawulu noted that the world generally fears an impending massive food shortage and possible famine.

He also noted that alongside petroleum products, Nigeria’s highest import bill was food, which he said was becoming increasingly expensive around the world.

In a related development, the Plenary legislators, while passing a motion sponsored by the Hon. Vincent Ofumelu Hon. Chinedu Obidigwe, Hon. Simon Atigwe and Hon. Dennis Amadi called on the Federal Ministry of Agriculture and Rural Development to include Anambra and Enugu States in the ongoing National Agricultural Growth Program (NAGS) under ATASP-l.

In addition, the House of Representatives in plenary session yesterday rejected a bill aimed at regulating the activities of non-governmental organizations and civil society groups.

Similar bills that were introduced in the 8th and current 9th Assembly have been met with criticism and condemnation.

The new bill, titled “Bill for the Establishment of a Non-Governmental and Civil Society Organizations Agency for the Promotion of Social Development Activities in Nigeria; and for Allied Matters (HB. 2044)”, sponsored by the Hon. Sada Soli, was presented for second reading.

On a point of order, Deputy Majority Leader Hon. Peter Akpatason suggested that the bill be withdrawn and resubmitted at a later date so that members have time to go through the draft and make contributions.

Corroborating, the Deputy Minority Leader, the Hon. Toby Okechukwu said: “I think we need his general principle of the bill. It should be discussed. It should be discussed knowingly. It is important that our colleague makes the copies available to the members so that doesn’t seem to make laws out of ignorance I think he should be removed and resign to be presented another day.

Legislators passed on second reading a bill to introduce lessons against sexual and gender-based violence (SGBV) into the curricula of all Nigerian secondary schools as an innovative, far-reaching, cost-effective and sustainable way to tackle sexual violence. against cases of SGBV. and its related offences.

The proposed legislation was titled “Bill to Introduce Preventive Measures and Teachings on Sexual Gender Based Violence into the School Curriculum as a Compulsory Subject (Civic Education) for all Secondary Schools in Nigeria; and to related matters (HB. 1937), ” was sponsored by Hon. Julius Ihonvbere.

Similarly, the House of Representatives has mandated its Committees on HIV/AIDS, Tuberculosis and Malaria, Health Services and Health Facilities to investigate the delay/non-disbursement of IMPACT project funds, its alleged underperformance and downgrading of the National Malaria Elimination (NMEP) rating by the Office of the Inspector General of the Global Fund and the purchase and distribution of unapproved bed nets across the country and report within six weeks for new legislation.

The lawmakers also called on the leadership of the National Malaria Control Program to explain that faulty bed nets are still being purchased, imported and mistrusted in Nigeria, contrary to World Health Organization standards and the local content guidelines of the Bedroom.

Therefore, the house also urged the Federal Ministry of Health, the National Malaria Control Program and other relevant ministries, departments and agencies to comply with the resolution to prioritize local content when procuring. antimalarial products using funds from the IMPACT Projects Facility.


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