House of Representatives, on Tuesday, averred that the recent increase in the pump price of premium motor spirit (PMS) will further push Nigerians deeper below the poverty line.
Chairman, Ad-hoc Committee on the recent hike in petrol pump price and the circumstances surrounding the increase from N537 to N617, Hon. Babajimi Benson (APC-Lagos) who disclosed this in Abuja, reiterated the House resolve to provide enabling environment for Nigerians to ventilate their opinions about government policies and programmes.
“As representatives of Nigerians, we have been inundated with calls and questions on the motive of government behind this recent increase. Petroleum is unarguably the lifeline of the Nigerian economy and any increase in its price will undoubtedly result in a ripple effect on price of goods and services, especially foodstuff.
“Statistics show that Nigerians spend an average of 80% of their incomes on food alone. This is why we fear that this recent increase will further push Nigerians deeper below the poverty line,” Hon. Benson said.
He however expressed optimism that the current administration means well for Nigerians and have its justification for the action.
“This is what we want to hear at this investigative hearing. Nigerians need to understand the rationale behind this action. But beyond that, they need to be assured that this price hike will not have more devastating effect on their livelihoods.
“We need to be able to convince Nigerians that their interest will always be protected,” he said.
Hon. Benson, therefore, urged the stakeholders to be open and objective in their submissions and provide the necessary information that will guide the committee in reaching a decision that will be mutually beneficial to the government and Nigerians in general since the primary goal of governance is the welfare of citizens.
“I would like to use this opportunity to reassure you of our commitment to fairness, transparency and objectivity in the work of this Committee. We shall do what is right to enable the House of Representatives to take a noble decision on this matter,” he said.
While presenting the position of Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr Brian Amonu urged Federal Government to provide loans for vehicle owners in the country to convert petrol-enabled vehicles to Compressed Natural Gas (CNG) usage.
Mr. Amonu stated that if the government transit just 10 percent of 48 million litres consumed daily in the country to natural gas, it would save Nigerians N2 billion daily or N730 billion annually.
This according to him means that natural gas can be delivered through IPMAN platforms at two hundred naira per liter to the farthest part of the country.
He stated that transition to CNG is the only solution to the situation caused by the removal of fuel subsidy.
“Today trying to raise money to build new refineries is almost impossible. The US government and the international development finance institutions would not give you money to invest in anything crude oil, because they consider it to be a dirty fuel.
“However, attracting investment to develop the domestic gas is another question. The gas that we are flaring today in Niger Delta is not only affecting the health and environment of Nigerians, it’s threatening them in Paris, it’s affecting the climate in Tokyo. So when you approach the international investment community to raise funding to provide natural gas base transportation, it is an easier conversation to have than crude oil.”
Mr Amonu added that the solution to relieve Nigerians from the high cost of Petrol lies in the Central Bank of Nigeria (CBN), saying it has a N250 billion gas expansion facility to support the utilisation of natural gas.
On his part, IPMAN National President, Mr. Chinedu Okoronkwo, explained the dictates of international prices are what caused the recent hike since the country has no functional refinery.
The Chairman of the committee Mr Babajimi Benson, observed that Nigerians spend 80 percent of their incomes on food alone, saying the recent hike in fuel price could further push Nigerians deeper below the poverty line.
He however commended IPMAN’s suggestion of transmission from petrol to natural gas.
To this end, the Committee resolved to invite other relevant stakeholders including management of Nigeria National Petroleum Company Limited (NNPCL) and CBN to appear before it.
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