National Conference dishes conditions for fuel subsidy subtraction

ABUJA (National Conference Report) – The controversy surrounding the recommendation by the Public Finance and Revenue Committee at the on-going National Conference demanding complete removal of the subsidy on petroleum products has been resolved.
 
A report from the conference Secretariat in Abuja lately has revealed that the Conference unanimously resolved that private sector investors granted licenses to build new refineries shall within a period of three years, build such refineries or automatically forfeit the licenses to enable other participants who are ready and willing to build them do so. ‘The Conference, the report said also observed that the issue of total subsidy removal on petroleum products has been a recurring decimal on the programmes of successive governments over the years and that there are merits in the arguments of both supporters and those condemning it.
 
“Based on arguments over the non-functionality of the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) which are due to the overbearing attitude of the Executive Arm of Government, the Conference decided that RMAFC should be placed on first-line charge. It also opted that in the future, Government agencies responsible for revenue generation and collection must comply with Section 162(3) of the 1999 Constitution which requires them to remit gross revenue in full to the Federation Account. Adding they must resort to the normal budget processes of budget approval through the National Assembly to fund their operations,” it stated.
 
According to the report, the Conference resolved that all the sections of the enabling Acts of these departments and agencies of government which allow them to retain revenues and surplus to fund their operations be amended. “The recommendation for licensed professionals to be engaged as tax administrators or consultants was rejected by the delegates. They also rejected the call for the establishment of revenue courts for expeditious disposition of tax issues,” the statement informed.
 
On the Sovereign Wealth Fund, the Conference agreed that 50% of accruals from excess crude account should be taken to the fund and equivalent percentage of earnings from solid minerals should also be taken to the fund. To boost mechanized farming across the country, the Conference resolved and adopted the recommendation for the establishment of an Agricultural Development Fund, noting that 10% of the money from the excess crude account should be set aside for the fund.
 
It was also agreed that Section 85(3) be deleted from the 1999 Constitution to enable the Auditor General of the Federation audit or appoint external auditors to audit Federal Government accounts in statutory bodies. The Conference interpreted the section as stating that: “Nothing in it shall be construed as authorizing the Auditor General to audit the accounts of or appoint auditors for government statutory corporations, commissions, authorities, agencies, including all persons and bodies established by an Act of the National Assembly.” To enhance the performance of the economy, it was agreed that government should source for funds to revamp the Ajaokuta Steel Projects and other steel projects through public private partnership.
 
The recommendation of the Committee which pointed out that the Government is free to engage in external borrowing was reversed in saying that the Government is not actually completely at liberty to borrow as a ceiling has to be placed on how much the Government needs to borrow in demand. Also, to monitor projects that are tied to borrowed funds, the Conference agreed that Debt Management Offices should be established in every State of the Federation instantly.