Fuel Subsidy: When Lagos Lawmaker Lectured Colleagues

Lagos lawmakers engaged in a hot debate on Monday, when the issue of the planned removal of fuel subsidy was brought before it by Hon. Sanai Agunbiade, a representative of Ikorodu Constituency 1.

The lawmakers were sharply divided with some in support of the removal of subsidy from the premium motor spirit popularly called petrol while others were against it. It, however, turned out that those who were against it were far more than those for the removal.

It also afforded a lawmaker from Eti-Osa Constituency 2, Hon. Gbolahan Yishau, the opportunity to enlighten his colleagues on the consequences of the removal of the subsidy or the planned hike in the price of petrol in the country, beginning from next year.

Agunbiade, who brought the motion before his colleagues, told them that it was time they lent their voice to the public outcry against the removal of fuel subsidy as the impact on the masses would be great.

According to him, since the inception of the President Goodluck Jonathan administration, the country has been facing different problems ranging from election violence to the Boko Haram insurgence. “There is no way the common man will benefit from this proposed removal of oil subsidy. The Federal Government should weigh the pros and cons before going ahead with its plan,” he said, adding that it would increase the cost of living and further throw the average Nigerian into squalor.

The Deputy Speaker, who maintained that the removal of oil subsidy would only affect the rich as against the belief that the poor people of the country would be affected, had explained to his colleagues that the action by the Federal Government would also draw investors and the banks to invest in refineries.

But Hon. Bisi Yusuf in his submission, stressed that the issue should be critically looked at as it was capable of causing a revolution, especially when considered with other problems currently being faced by the people of the country.

When the Speaker, Adeyemi Ikuforiji, tried to call him to order and remind him that if a revolution takes place, it would swallow even those who are not part of the problems, Yusuf said: “That is why we should all play our roles well. I understand your fears, Mr. Speaker, but the revolution will not swallow you if you play your part well.”

Yishau reminded his colleagues that fuel affects the lives of every Nigerian. “There is this misconception that fuel has to do with driving vehicles. As a car owner, the amount you spend fuelling your car is about N650, but in homes and small scale businesses, you spend three times more on your generators,” he said, while stressing that this has a ripple effect on businesses and the economy.

He lamented that the country is trying to boost the economic sector and is also trying to carry out actions that are inimical to the development of the sector.

“The Federal Government claims that we consume 32 million litres of fuel per day in this country. But if you take statistics, it may not be that high because there are allegations of round tripping; people buying from local refineries and bringing it back into the country as if they are importing it, there are leakages through the porous borders and people buy from here and take to other countries.

“At the end of the day, you would find out that we don’t even consume that amount of PMS that is claimed.

“The Energy Information Administration of the U.S. which gives statistics on energy says in one barrel, you can get between 46 per cent to 66 per cent yield of PMS while the rest go with diesel and the rest.

“One barrel of oil contains 42 gallons which is about 164 litres. So averagely, we can get 82 litres of PMS from one barrel of oil. If this country requires 32 million litres per day, that means we require a refinery that has the capacity of 410, 000 barrels per day.

“We have refineries in the country which have a combined capacity of 445,000 barrels, which means the country can produce what we need and if they are producing at 70 per cent as claimed by the Federal Government, they should be producing over 22 million litres per day,” he said.

He also said that apart from the requirement of the Organisation of Petroleum Exporting Countries (OPEC), the country can still get excess capacity of 600,000 barrels for local consumption if the refineries are working as claimed by the Federal Government.

He added that on the average, the cost of building a refinery is about N1.2 trillion, the same amount claimed to be spent on subsidy in a year.

He said the Federal Government should get electricity working and with this, people would not need to buy fuel and Nigerians would not complain.

He, therefore, warned the government to stop deceiving the people since it has the capacity both in the refineries and in funds to make petrol available even at a cheaper rate.

Speaker of the House, Adeyemi Ikuforiji, then suggested that the House put it to a public hearing which the lawmakers supported. The public hearing has been fixed for Thursday next week.