Controversy surrounding the recommendation by the Public Finance and
\nRevenue Committee of the on-going National Conference demanding complete
\nremoval of subsidy on petroleum product has been resolved.<\/p>\n
The Committee\u2019s recommendation had met a brick wall on Monday when it was
\nraised on the floor of the Conference with both those who were for and
\nthose against stating their positions with vehemence.<\/p>\n
However, through a motion by Dan Nwanyanwu and 24 others on Tuesday, it
\nwas agreed that removal of subsidy on petroleum products within the next
\nthree years should be preceded by building of new refineries and repair of
\nexisting ones to full capacity.<\/p>\n
The conference unanimously resolved that private sector investors granted
\nlicenses to build new refineries shall, within a period of three years,
\nbuild such refineries or automatically forfeit such licenses to enable
\nother participants who are ready and willing to build such refineries to
\ndo so.<\/p>\n
Conference observed that the issue of total subsidy removal on petroleum
\nproducts has been a recurring decimal on the programmes of successive
\ngovernments over the years; and that there are merits in the arguments of
\nboth the protagonists and the antagonists.<\/p>\n
The decision of the Conference was drawn from the observation that
\nsustained subsidy retention has become a major drain on the nation\u2019s lean
\nresources which cannot be left to continue indefinitely.<\/p>\n
It was argued that although the subsidy regime has been fraught with
\nmassive corruption and may not necessarily be to the advantage of the poor
\nmasses as often indicated, immediate removal of subsidy without requisite
\nmitigating infrastructure was bound to have a spiral effect that may see
\nprices of essential commodities rising with attendant effect on the poor
\nmasses.<\/p>\n
The Conference also resolved that two Accountant Generals, one for the
\nFederation and another for the Federal Government be appointed henceforth
\nsubject to the approval of the Senate, for a single term of six years.<\/p>\n
Based on arguments over the non-functionality of the Revenue Mobilisation,
\nAllocation and Fiscal Commission (RMAFC) due to the overbearing attitude
\nof the Executive Arm of Government, Conference decided that RMAFC should
\nbe placed on first-line charge.<\/p>\n
Conference however rejected an amendment by a member that salaries and
\nallowances of political office holders be placed at par with that of
\nsenior civil servants through amendment of Section 70 of the 1999
\nConstitution.<\/p>\n
Also rejected was the recommendation that the Fiscal Responsibility Act of
\n2007 should be enshrined in the 1999 Constitution although it was resolved
\nthat its adherence be strictly followed.<\/p>\n
It was also the decision of the Conference that henceforth, government
\nagencies responsible for revenue generation and collection must comply
\nwith Section 162(3) of the 1999 Constitution which requires them to remit
\ngross revenue in full to the Federation Account and resort to normal
\nbudget process of obtaining budget approval from the National Assembly to
\nfund their operations.<\/p>\n
Consequently, Conference resolved that all the sections of the enabling
\nActs of these departments and agencies of government that allow them to
\nretain revenues and surplus to fund their operations be amended.<\/p>\n
A recommendation that licensed professionals be engaged as tax
\nadministrators or consultants was rejected by the delegates; also rejected
\nwas the call for establishment of revenue courts for expeditious
\ndisposition of tax issues.<\/p>\n
It was also the decision of Conference that the current 1.68% charge from
\nthe Federation Account for the development of solid minerals nationwide be
\nincreased to 5% while government should commence immediate utilization of
\nthe fund for the purpose it was designated.<\/p>\n
The plenary session on Tuesday also approved the recommendation that solid
\nminerals and mines should be included in the Concurrent Legislative List.<\/p>\n
On the Sovereign Wealth Fund, Conference agreed that 50% of accruals from
\nexcess crude account should be taken to the fund while equivalent
\npercentage of earnings from solid minerals should also be taken to the
\nfund.<\/p>\n
To boost mechanized farming across the country, Conference resolved and
\nadopted the recommendation for establishment of Agricultural Development
\nFund and that 10% of the money from the excess crude account should be set
\naside for the fund.<\/p>\n
It was also agreed that Section 85(3) be deleted from the 1999
\nConstitution to enable the Auditor General of the Federation to audit or
\nappoint external auditors to audit Federal Government accounts in
\nstatutory bodies.<\/p>\n
The section states that: \u201cNothing in this sub-section shall be construed
\nas authorizing the Auditor General to audit the accounts of or appoint
\nauditors for government statutory corporations, commissions, authorities,
\nagencies, including all persons and bodies established by an Act of the
\nNational Assembly.\u201d<\/p>\n
To enhance the performance of the economy, it was agreed that government
\nshould source for funds to revamp Ajaokuta Steel Projects and other steel
\nprojects through public private partnership.<\/p>\n
On the recommendation of the Committee that government was free to engage
\nin external borrowing, the Conference resolved that government was not
\ncompletely at liberty to borrow but that a ceiling has to be placed on how
\nmuch government should borrow.<\/p>\n
To monitor projects tied to borrowed funds, the Conference agreed that
\nDebt Management Offices be established in each state of the Federation
\nwithout further delay.<\/p>\n
In a bid to eliminate corruption in the country, the Conference said the
\nNational Assembly should enact what it called Ill-Gotten Gain Act such
\nthat individuals can be held to explain the sources of their wealth.<\/p>\n","protected":false},"excerpt":{"rendered":"
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\u2019s recommendation…<\/p>\n","protected":false},"author":1,"featured_media":25711,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[5],"tags":[],"class_list":["post-27502","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\n