President
of the Senate, Dr. Bukola Saraki, has described as both false and wicked the
swirling reports about likely fuel hike, allegedly being orchestrated by the
Senate, saying there is no such intention in the first place.
Saraki, who said he was going to order an
official statement to that effect, however dismissed as a lazy type of
journalism the habit of taking innocuous reports on the surface and
misinterpreting them as if such writers have predetermined motives.
In the same vein, the Senate has said the
recommended increase in the pump price of petrol and diesel by N5 per litre,
remains a proposal that is yet to be reviewed by the Senate as a whole. The
legislative body however assured Nigerians that it would reject any proposal to
increase the price of fuel, just as it abolished fixed electricity charges and
rejected the hike in hike in data price.
Addressing the issue in an exclusive chat
with THISDAY yesterday, Saraki said the story was obviously taken from the
report of a public hearing on road maintenance, which suggested taxing the
already existing templates of internal inflow, such that would not affect the
pump price of petroleum or the end users.
According
to him, since appropriation for the road maintenance was no longer feasible and
it was important they took care of it, the idea was suggested that they looked
inward, perhaps, by reviewing the Petroleum Products Pricing regulatory Agency
(PPPRA) inflow template and see the areas the suggested N5.00 could be taken
from, albeit in bits.
He said, for instance, the public hearing
reports identified some of the steady inflow from the ports in terms of
charges, from where some bits could be taken, adding that the overriding instruction
was that the N5.00 must not reflect on the pump price or passed down to the
consumer in whatever way.
“I am surprised therefore that anybody
would take such a report and turned it on its head. Do I call that lazy
journalism or what? The report is so false and wicked that you can’t but see
the sinister intention in it. The charge to maintain road is in no way a
concern to the public because it would not be passed down to them.
“But because anything that is anti-senate
sells quickly, nobody bothered to find out the true picture and the negative
report sold like wildfire, when indeed, it was the imagination of the writers
and possibly their sponsors.
I am going to get Yusuph (his media aide)
to issue a statement on this. Whether or not the critics of the Senate like it,
we are and will always be pro-masses.
“Whatever
this Senate does, even if it appears in the estimation of our critics as
anti-people, is done first with the interest of the people factored critically
into accounts. We set out ab initio to protect our people and their interest
and that has remained our guiding principle. We will not depart from it. Now
ask yourself, on what basis will an increase in the pump price of fuel be
justified at this period, when you consider the state of the economy?
“Maybe those who sold the story and their
sponsors would have an answer. We are not insensate representatives and if that
is the impression that some out there want registered in the subconscious of
the people about the senate, then, they will try harder. Check out our records
and genuinely analyse them, we have consistently been pro-masses of this great
country and that is not going to change,” he maintained.
The Senate on its Twitter handle @NGRSenate
yesterday said there was no cause for alarm over the issue which had already
drawn condemnation from several sections of the country.
The tweets read: “Story about recommended
increase in price of fuel remains a proposal. It has not been reviewed by
Senate plenary which comprises of all 109.”
“Rest assured senate that abolished fixed
electricity charges, halted hike in data price & much more will not support
increase in fuel price This recommendation, like all reports, will still be
reviewed & debated at plenary in line with Senate procedures and democratic
practices.
“Committee Report on funding road was being
deliberated, when salient issues arose which led to the stepping down to
clarify grey areas. Absolutely no proposal to increase fuel price! What was
discussed at public hearing with stakeholders is the need for ways to maintain
roads.”
“While everyone agreed on need to set aside
a particular amount to fix roads, a proviso was set that price of fuel SHOULD
NOT BE INCREASED. Even for purpose of funding road maintenance, we must
maintain charges as it exists within the PPPRA template of PMS at 145 Naira.”
The
Senate Committee on Works recently presented for enactment by the upper
chamber, a proposed law titled: ‘The National Road Fund Establishment Bill’,
which is part of the 11 economic reform bills initiated by the Senate and
already endorsed by the House of Representatives. The 11 economic recovery
bills from where the National Road Fund Bill originated was initiated by the
National Assembly leadership to help take the country out of recession.
They are the Petroleum Industry Governance
Bill; National Development Bank of Nigeria Bill; National Road Fund Bill;
Federal Roads Authority Act (Amendment) Bill; and National Transport Commission
(Establishment) Bill.
Others are Nigerian Ports and Harbours Authority
Act (Amendment) Bill; Warehouse Receipts Act (Amendment) Bill; Companies and
Allied Matters Act (CAMA) (Amendment) Bill; Investment and Securities Act
(ISA); Customs and Excise Management Act and Federal Competition Bill.
However, the nine sources identified for
generating revenue for the planned National Roads Fund are fuel levy of five
naira (N5) chargeable per litre on any volume of petrol and diesel products
imported into Nigeria and on locally refined petroleum products, as well as
axle load control charges.
There is also the toll fees (a percentage
not exceeding 10% of any revenue paid as user charge per vehicle on any federal
road designated as a toll road, but not applicable to PPP roads); international
vehicle transit charges; and inter-state mass transit user charge of 0.5%
deductible from the fare paid by passengers to commercial mass transit
operators on inter-state roads.
The bill also recommended road fund
surcharge of 0.5% chargeable on the assessed value of any vehicle imported at
any time into Nigeria; lease, licence or other fees which shall be 10% of the
revenue accruing from lease or licence or other fees pertaining to
non-vehicular road usages along any federal road and collected by the federal
roads agency.
On the list too are grants and loans, and
gifts of land, money or other property. The bill further stated that the
National Roads Fund would be established with a high level of independence
under the jurisdiction of the Federal Ministry of Finance, which will only
oversee the fund for policy direction.
The Senator Kabiru Gaya-led Committee on Works, which
processed the bill, said “The National Roads Fund shall set aside an amount not
exceeding 3% of the total monies accruing to it in the preceding year as
Administrative Fund.”
The bill was recently listed on the Order Paper but could
not be considered, because of time constraint. Gaya, a representative of the
All Progressives Congress (APC) from Kano State, however pleaded with the
Senate to pass the bill to facilitate the nation’s economic recovery.
The committee report was reportedly signed by 15 members and
they were Gaya (chairman), Clifford Ordia (vice chairman), Mao Ohuabunwa, Bukar
Abba Ibrahim, Biodun Olujimi, Ben Bruce, Gilbert Nnaji, Abubakar Kyari, Ibrahim
Danbaba, Mustapha Bukar, Ahmed Ogembe, Sani Mustapha and Buruji Kashamu as
members.
Unfortunately, the stories were
written in a way that suggested that the end users, in this case the people
were to pay for the increase. The import of the proposed fuel levy charge,
according to the reports, was that end-users, including motorists, would pay N5
tax on every litre of fuel bought at any fuel station, insinuating that “This
will worsen the hardship most Nigerians currently face.”
In a similar development, the
Special Adviser to the Senate President (social media), Mr. Bamikole Omishore,
in a statement made further clarifications on the matter.
“At the Public hearing on the National Roads Fund Bill the
stakeholders were unanimous on the need to access a percentage of the funds for
the sustainable maintenance of roads from the pricing template of petroleum
products. While the unanimity was on a percentage, opinion varied as to what
percentage. Some argued for 25%, 11%, 7% and 5% of the value of the price of
the product.
“This position was held strongly since most other African
countries have actually implemented an average of N25 surcharge on petroleum
products for the maintenance of their roads.
“It was the widely-held view that we may not be able to go
that far in view of the economic challenges the country was going through and
the need to ameliorate the suffering of the ordinary Nigerian.
“The technical committee in review this submission
determined that even at a surcharge of 5% which leaves the value at about N11
(at the current price of PMS) will be untenable not only due to implementation
challenge that would have require that at all times, the surcharge will mean an
addition burden is placed on Nigerians beyond the cost of the petroleum
product.”
“Rather it was agreed that the charge be pegged at N5 (five
naira) and implemented within the existing charges template rather than a
calculation arrived at in addition to the price of the product.”
“Therefore,
what the Senate has adopted is an innovative and most sensitive approach to
eliminate the possibility of increasing the price of fuel in order to fund the
Roads Fund. Now with what we have the charge on petroleum products for the
purpose of funding road maintenance will have to be determined within the
charges template as they already existing within the PPPRA template.
“Finally, it’s important therefore to make
it clear that there is no ambiguity in what the Senate has done as there will
be no one naira added to the current price of fuel as a result of this bill.
“The charge is to be accommodated within
the pricing charge template in effect within the PPPRA. What the Senate has
adopted is the minimalist approach to ensure that our roads can come back to
life.”
“Where we are with our roads and why the
need for the National Roads Funds: 77% of our roads are classified as
dilapidated and dangerous, one of the highest in Africa. The average in Africa
is 25%.”
“A total of 12, 077 road crashes were
recorded across the country in 2015, the News Agency of Nigeria notes. Nigeria
is ranked second-highest in the rate of road accidents among 193 countries of
the world.”
“WHO adjudge Nigeria the most dangerous
country in Africa with 33.7 deaths per 100,000 population every year. According
to WHO, one in every four road accident deaths in Africa occurs in Nigeria”, he
added.
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