Saraki, Marafa disagree over N2.4b daily fuel subsidy

SENATE President Bukola Saraki and Senate Committee on Petroleum Resources Chairman Senator Kabiru Marafa yesterday disagreed over the alleged daily payment of N2.4 billion to subsidise fuel.

Marafa told reporters in Abuja that the country does not pay up to N2.4 billion to subsidise fuel daily as claimed by Saraki.

The Senate President had claimed that President Muhammadu Buhari’s administration was spending N2.4 billion to subsidise 50 million litres every day.

Saraki, at a programme aired on African Independent Television (AIT) yesterday, noted: “It is shocking and alarming that the current administration in the country claimed that Nigerians are consuming 50 million litres of fuel every day and for two years, they did it without appropriation.

“What type of integrity are we talking about when a government claims to have been spending N2.4 billion.

“We have a committee set up to look into it but we have always met a brick wall.

“For two years, we made several cases to the executive that the subsidy claims must be presented for appropriation because we cannot continue to rely on the arguments by the executive that it was only spending money on under recovery.”

Marafa, in an interview with reporters, sharply disagreed with Saraki.

The Zamfara Central lawmaker insisted that findings by his committee showed that Nigerians were not consuming more than 30 million of litres of fuel per day.

He also noted that it was not possible for the country to spend up to N2.4 billion ever day to subsidise fuel consumption.

Marafa said: “It is not possible to spend N2.4 billion on subsidy in Nigeria every day. Even though we don’t have the exact figure, but it ranges between 25 to 35 million per day, depending on the circumstances.

“Even, if we are selling 30 million litres per day at N145 per litre, it will amount to N4.3 billion. If you say that government is subsidising by N2.4 billion, are we saying that government is selling at half of the amount?

“The landing cost of PMS (Petrol) is N180 – that means government is subsidising maximum N40 naira per litre. If you multiply that with 30 million litres, it cannot be up to N2.4 billion.

“I don’t want to join issues with the Senate President. I don’t know the particular committee he mandated to carry out his investigations, but if he said so, it must be for the purpose of winning elections.”