Oil sector probe: Turning searchlight on the probers
Nigerian lawmakers recently put on a show to probe those responsible for the lingering fuel scarcity that seems to have defied all efforts at solutions. This continues a tradition of setting up ineffectual probes into corporate or public malfeasance. It is purportedly done at the behest of the people but few actually ask about the competence of these probers.
The joint committee of the National Assembly on Petroleum (Downstream) accused the NNPC and petroleum marketers of defrauding Nigeria N1trillion in the importation of petrol.
Kabir Marafa, chairman of the Senate committee on Petroleum hinted of a massive fraud in the sector.
“When we asked them (NNPC), they told us, that they are importing 30 cargoes of 37,000MT per month through the DSDP contract. If you compute it at 1341 per MT by 37,000, you will have 1.488b monthly.
“Assuming we consume 40m litres per day, we will have seven days left in each month and if you multiply it by 12 you will have supply of 84 days left,” he said.
He had strong words for the marketers too. Citing a document obtained from the CBN, he said they got $3.3b dollars at subsidised rate of N305 exchange rate.
“The amount should serve us for 189 days at 40m litres per day. In 2017, they are supposed to import 4.2b litres which are equivalent supply of 107 days at 40m litres per day.
“If you take 107 days of the marketers and the excess of 84 days of NNPC that will give you supply of 191 days at 40m litres per day. In all, we had excess of 7.6b litres which is for 191 days. The cost of it at N141 per litre is about N1.1tr,” according to media reports.
While accusations of fraud in the oil sector are many, not much is done by the lawmakers to fix the problem. After a decade, the lawmakers have not gotten around to passing a comprehensive industry wide bill for the sector. The Petroleum Industry Governance Bill has been passed in the Senate, the House of Representatives have not gotten around to passing its own version. There is no clear indication that the host community and fiscal aspects of the bill would be passed any time soon.
Policy and lawmaking from both the executive and the lawmakers proceed at snail speed despite 2, 570 aides acting as Special Advisers, Senior Special Advisers, Special Assistants, Personal Assistants, servicing the 469 lawmakers.
Nigerians are regaled with theatrics in the name of hearings that are incapable of fostering real reforms. Chief executives of corporations are often invited to answer harebrained questions wasting their valuable time when there is even no plans to enact concrete reforms.
Nigerian lawmakers are not quick to enact laws or amend laws that are outdated. Nigeria’s criminal laws are antiquated, especially evidence act which still does not even recognise electronic formats. In a world where artificial intelligence, augmented reality and 3D printing are poised to become the new normal, lawmaking has been reduced to playing in your own poop.
This is why they cannot pass laws to prohibit open grazing to reduce mindless killings by herdsmen, amend the law to ensure the president attaches the portfolio of ministers before they are confirmed, reduce the exclusive list to correct the aberration where the Federal government decide what happens in a primary school at Ogbomosho. Rather retrogressive bills like gagging the NGOs.
In an economy that is in doldrums, Nigerian lawmakers award themselves profligate sums of money as allowances and often abandon critical matters of state to fight over trifles. Budgets are passed in tardy fashion, a flawed constitution cries for attention while lawmakers twiddle their fingers. They are seen as unruly, tardy and indecorous making the toga of ‘Distinguished’ and ‘Honourable’ sound like a sad joke.
ISAAC ANYAOGU