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Legislature

Audit Query: Reps Cttee Grills Minister, officials over excessive Loss of revenue

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***Also for Non Redition of Audited Account, expenditure of Service Wide Vote

***As minister claims ignorance, begs for more time

The Public Account Committee (PAC), of the House of Representatives on Monday grilled the Minister of
of Industry, Trade and Investment, Otunba Niyi Adebayo along with Heads of Parastatals and top officials of the Ministry on several queries from the Office of the Auditor General of the Federation.
The queries were on issues ranging from issuance of capital allowances to several companies without proper documentation to back them up, non return of audited accounts to expenditure from Service Vide Vote from 2013 to date.

In his opening remarks, the Chairman of the Committee, Hon Oluwole Oke ( PDP-Osun) explained to the Minister that before the coming of the Finance Act, only Permanent Secretaries were being invited to answer such queries, adding that with the coming into effect of the 2020 Finance Act, invitations are now being extended to Ministers.

He explained that the mission of the Committee was to bring Head of agencies under the Ministry that have refused over time to respond to invitation to come and answer to queries from the Auditor General, but rather consistently give one excuse or the other for their failure honour such invitations

According to him, “These people are appointees of the President through your office. By the provisions of the constitution, the President has often come to the National Assembly and yet, his appointees refused to come.
“If they cannot do the job they are asked to do, they should resign because there are those ready to do the job.

“We did not want to get to the level of issuing warrant of arrest for the Heads of agencies. We felt that if we invite you and ask you to come with them, they will respect you and come. We were right, today, they are here with you.

“We want them to come and explain to the Nigerian people how they spent public resources in their disposal. Is that too much to ask?
“If the President will come to the parliament, why wont his appointees? It is for accountability and transparency, the Parliament is not after anyone, even as you are here today physically, the Director General of the Standard Organization of Nigeria, (SON), is still not here, he has been avoiding the Committee, he has always been seeking for an extension of time for our invitations”

The Minister however appealed to the Committee to give him and his team more time to fine tune their documents and come back to them for proper defence of the audit queries.

He stated that the issues raised in the queries were just being brought to his notice at the hearing, stressing that he would need time to sit with his offficials and the Permanent Secretary to prepare a more comprehensive answer to the queries.

The Minister assured that he would personally come back to the Committee with the Permanent secretary for the presentation which the Committee obliged him in the spirit of fair heating

In the documents presented before the Committee, it revealed that the Ministry of Industry, Trade and Investment had issued about 4,672 certificate of capital allowance worth about N7,865,186,245,398.81 to 2, 203 companies between January 2017 and December 2021.

The documents also revealed that within the same period the Ministry recorded what they described as disallowance (finding after an audit that a business or individual taxpayer was not entitled to a deduction or other tax benefit claimed on a tax return) of N101.553 billion.

Capital Allowance is the practice of allowing a tax payer to get tax relief on capital expenditure by allowing it to be deducted against their annual taxable income.

It is akin to a tax deductible expenses and are available in respect of qualifying capital expenditure incurred on the provision of certain assets in use for the purposes of a trade or rental services and effectively allow a tax payer to write off the cost of an asset over a period of time.

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Legislature

CNG Safety Under Scrutiny: NASS Questions Readiness as Explosions Raise Alarms

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National Assembly Complex

The National Assembly has called for a comprehensive reassessment of Nigeria’s Compressed Natural Gas (CNG) initiative following alarming reports of vehicle explosions attributed to uncertified conversions. Lawmakers are urging the Federal Government to prioritize rigorous adaptability tests to ensure the safety and suitability of the technology in Nigeria’s unique environment.

During the 2025 budget defense session of the Joint Committee on Petroleum (Downstream), Petroleum (Upstream), and Gas, Senator Natasha Akpoti (PDP, Kogi Central) questioned the adequacy of research conducted before rolling out the CNG program.

“Nigeria’s bumpy roads and hot climate differ significantly from the smooth and cooler environments where this technology originated. Were these factors considered before introducing CNG?” Akpoti asked.

Her concerns come amid incidents of explosions in CNG-converted vehicles. The Minister of State for Gas, Hon. Ekperikpe Ekpo, attributed these accidents to uncertified conversions carried out by roadside technicians, emphasizing that certified centers adhere to strict safety standards.

Ekpo also assured lawmakers that the technology had been evaluated by a Presidential Committee on CNG and affirmed its long-term viability. “CNG has come to stay,” he stated.

The session also highlighted budgetary concerns, particularly the Ministry of Petroleum’s 2025 capital allocation of N903 million. Lawmakers criticized the sum as inadequate to address Nigeria’s pressing energy challenges.

“For a ministry driving Nigeria’s energy transition, this allocation raises concerns about commitment to infrastructure and innovation,” remarked Hon. Kafilat Ogbara.

As Nigeria seeks to diversify its energy mix, the National Assembly has stressed the need for enhanced safety measures, proper implementation, and increased funding to fully realize the potential of CNG while ensuring public safety and trust.

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Legislature

Umahi expresses Frustration over Fixing Nigerian Roads

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Dave Umahi

***Seeks Support for Loans as Budgetary Provisions Fall Short

The Minister of Works, Senator David Umahi, has voiced his deep frustration over the state of Nigeria’s road infrastructure, highlighting inadequate yearly budgetary allocations as a major barrier to progress.
Speaking during the 2025 budget defense session before the Senate Committee on Works in Abuja on Friday, Umahi described the financial constraints as overwhelming. “I’ve succeeded in most of my life’s engagements, but I feel frustrated fixing Nigerian roads with these meagre allocations,” he lamented.
Umahi disclosed that President Bola Tinubu inherited 2,064 road projects valued at N13 trillion, but rising costs have pushed the estimated expenditure to N18 trillion. He noted that the N827 billion allocated for road infrastructure in the 2025 budget is grossly insufficient to address the challenges.
“Roads are critical to economic growth and poverty reduction. They create jobs and drive economic activities. However, fixing these roads cannot be achieved with yearly budget provisions alone,” he explained.
The minister urged Nigerians to support the government’s borrowing initiatives, assuring that the funds would directly impact citizens’ lives by boosting economic activities and reducing hunger.
Senators on the committee, led by Senator Mpigi Barinaga, praised Umahi for his efficient management of scarce resources and supported his call for alternative funding mechanisms. They acknowledged the scale of the work required and admitted that the proposed budget falls far short of what is needed to resolve Nigeria’s road infrastructure crisis.
The session concluded with a shared resolve to explore additional funding options to tackle the nation’s road challenges effectively.

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Legislature

In another rowdy session, Lawmakers Demand Accountability Amidst Budget Defense Chaos

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Heineken Lokpobiri

***Minister Lokpobiri Assures of Reforms, Apologizes for Lapses

The 2025 budget defense session for the petroleum sector took a contentious turn on Friday as the Senate and House of Representatives Joint Committee on Petroleum (Upstream, Midstream, Downstream, and Gas) erupted into disorder. Tensions flared over delays in budget documentation, with lawmakers decrying the Ministry of Petroleum Resources’ perceived lack of preparedness and respect for legislative protocols.

The meeting, chaired by Senator Jarigbe Agom Jarigbe, was already fraught with logistical challenges. The cramped committee room, bursting with lawmakers and ministry officials, became the backdrop for a fiery exchange that highlighted the strained relationship between the legislative and executive branches. Calls to relocate the session to a more accommodating venue went unheeded, adding to the frustration.

Before the session could proceed, Hon. Kelechi Nwogu raised a procedural objection, pointing out the absence of vital budget documents. “We cannot engage in a meaningful discussion without the necessary materials. This undermines the integrity of the process,” Nwogu asserted.

The Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, faced sharp criticism for the disorganization. Hon. Ado Doguwa, Co-Chairman of the Joint Committee, accused the Ministry of fostering an adversarial relationship with the legislature. “Minister, we see you only once a year, and even then, the lack of collaboration is glaring. This is unacceptable,” Doguwa said, his frustration evident.

Lokpobiri, in an attempt to salvage the situation, apologized for the lapses. “Distinguished Senators and Honourable Members, I deeply regret this oversight. It was not intentional. The budget documents are being distributed as we speak,” he said. He assured lawmakers that the Ministry remained committed to supporting legislative oversight and improving future engagements.

However, Lokpobiri’s lighthearted remark that the documents were being delivered in “Ghana Must Go” bags—containing no money—elicited mixed reactions. While some lawmakers chuckled, others viewed it as a diversion from the seriousness of the issue.

Doguwa, accepting the apology, stressed the need for strict adherence to legislative guidelines. “While we appreciate the apology, the late submission of documents is a breach of procedure. This cannot continue. We demand accountability and timely cooperation moving forward,” he said.

The session ultimately ended in stalemate, with lawmakers insisting on postponing the meeting until all necessary documents had been reviewed. The debacle underscores the persistent challenges of executive-legislative coordination in Nigeria’s budgetary process, particularly in critical sectors like petroleum.

As the Joint Committee prepares to reconvene, stakeholders will be watching closely to see if the Ministry of Petroleum Resources can rebuild trust and ensure a smoother process in the future.

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