Controversy surrounding the recommendation by the Public Finance and
Revenue Committee of the on-going National Conference demanding complete
removal of subsidy on petroleum product has been resolved.
The Committee’s recommendation had met a brick wall on Monday when it
was raised on the floor of the Conference with both those who were for
and those against stating their positions with vehemence.
However, through a motion by Dan Nwanyanwu and 24 others on Tuesday,
it was agreed that removal of subsidy on petroleum products within the
next three years should be preceded by building of new refineries and
repair of existing ones to full capacity.
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 such licenses to
enable other participants who are ready and willing to build such
refineries to do so.
Conference 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 the protagonists and the antagonists.
The decision of the Conference was drawn from the observation that
sustained subsidy retention has become a major drain on the nation’s
lean resources which cannot be left to continue indefinitely.
It was argued that although the subsidy regime has been fraught with
massive corruption and may not necessarily be to the advantage of the
poor masses as often indicated, immediate removal of subsidy without
requisite mitigating infrastructure was bound to have a spiral effect
that may see prices of essential commodities rising with attendant
effect on the poor masses.
The Conference also resolved that two Accountant Generals, one for
the Federation and another for the Federal Government be appointed
henceforth subject to the approval of the Senate, for a single term of
six years.
Based on arguments over the non-functionality of the Revenue
Mobilisation, Allocation and Fiscal Commission (RMAFC) due to the
overbearing attitude of the Executive Arm of Government, Conference
decided that RMAFC should be placed on first-line charge.
Conference however rejected an amendment by a member that salaries
and allowances of political office holders be placed at par with that of
senior civil servants through amendment of Section 70 of the 1999
Constitution.
Also rejected was the recommendation that the Fiscal Responsibility
Act of 2007 should be enshrined in the 1999 Constitution although it was
resolved that its adherence be strictly followed.
It was also the decision of the Conference that henceforth,
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 and resort
to normal budget process of obtaining budget approval from the National
Assembly to fund their operations.
Consequently, Conference resolved that all the sections of the
enabling Acts of these departments and agencies of government that allow
them to retain revenues and surplus to fund their operations be
amended.
A recommendation that licensed professionals be engaged as tax
administrators or consultants was rejected by the delegates; also
rejected was the call for establishment of revenue courts for
expeditious disposition of tax issues.
It was also the decision of Conference that the current 1.68% charge
from the Federation Account for the development of solid minerals
nationwide be increased to 5% while government should commence immediate
utilization of the fund for the purpose it was designated.
The plenary session on Tuesday also approved the recommendation that
solid minerals and mines should be included in the Concurrent
Legislative List.
On the Sovereign Wealth Fund, Conference agreed that 50% of accruals
from excess crude account should be taken to the fund while equivalent
percentage of earnings from solid minerals should also be taken to the
fund.
To boost mechanized farming across the country, Conference resolved
and adopted the recommendation for establishment of Agricultural
Development Fund and 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 to audit or
appoint external auditors to audit Federal Government accounts in
statutory bodies.
The section states that: “Nothing in this sub-section 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 Ajaokuta Steel Projects and
other steel projects through public private partnership.
On the recommendation of the Committee that government was free to
engage in external borrowing, the Conference resolved that government
was not completely at liberty to borrow but that a ceiling has to be
placed on how much government should borrow.
To monitor projects tied to borrowed funds, the Conference agreed
that Debt Management Offices be established in each state of the
Federation without further delay.
In a bid to eliminate corruption in the country, the Conference said
the National Assembly should enact what it called Ill-Gotten Gain Act
such that individuals can be held to explain the sources of their
wealth.
