The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) is in support of the fuel subsidy removal announced by President Bola Ahmed Tinubu.
The RMAFC chairman, Mohammed Bello Shehu said the petrol subsidy is long overdue and a major challenge to Nigeria’s economic growth and development.
Mr. Shehu disclosed this in a statement released on Thursday while recalling that the commission had consistently expressed its position on the subsidy removal debate since the time of the late Hamman Tukur who chaired the commission in the early 2000s.
According to Mr. Shehu, the commission’s position is premised on the argument that the continued payment of large amounts of money to a privileged few in the name of subsidy was a major drain on Nigeria’s scarce resources.
He believes the records of subsidy transactions have not been transparent.
The RMAFC is also worried that the Nigerian National Petroleum Company Limited (NNPCL) has stopped contributing to national revenue due to the fuel subsidy regime.
“The country can no longer sustain fuel subsidies whose demerits far outweigh its benefits to the citizenry.
“It is saddening to note that since 1st January 2022 to date, the Nigerian National Petroleum Company Limited (NNPCL) has not been contributing to the Federation Account due to the claimed subsidy payments,” he said.
“A total amount withheld by the NNPCL as claimed subsidies for this period amounted to N8,480,204,553,608.13 (N8.4 trillion) as reported by the Office of the Accountant General of the Federation(OAGF) which is yet to be reconciled by the RMAFC, OAGF, and NNPCL,” the RMAFC boss added.
Mr. Shehu described President Tinubu’s 29 May pronouncement on the removal of fuel subsidies as the appropriate step in the right direction.
