Senate

Senate Approves 2025–2027 Fiscal Framework, Launches Probe into N8.48tr NNPCL Subsidy Allegations

Published

3 months ago

December 4, 2024

Senate Plenary

The Senate has approved the 2025–2027 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) while mandating a comprehensive investigation into allegations that the Nigerian National Petroleum Corporation Limited (NNPCL) withheld ₦8.48 trillion in petrol subsidies and $2 billion (₦3.6 trillion) in unpaid taxes.

The approval followed the presentation of a report by Senator Sani Musa (Niger East), Chairman of the Joint Committees on Finance and National Planning & Economic Affairs. The fiscal document sets key projections, including an exchange rate of ₦1,400 to the dollar for 2025 and a GDP growth rate of 4.6%.

The Senate also tasked its Committees on Finance and Petroleum as well as Gas to investigate allegations that the Nigerian National Petroleum Corporation Limited (NNPCL), withheld about N8.48 trillion in petrol subsidies, and $2 billion (NGN 3.6 trillion) in unpaid taxes (dividends).

The allegation was highlighted by reports from the Nigeria Extractive Industries Transparency Initiative (NEITI) and the Revenue Mobilization, Allocation, and Fiscal Responsibility Commission.

This was just as the Office of the Auditor-General of the Federation, said it had received the necessary and complete documents required to verify the N2.7 trillion fuel subsidy claim by the Nigerian National Petroleum Company Limited against the government.
The Chairman, Senate Committee on Public Accounts, Senator Aliyu Wadada, corroborated the claims of the AuGF on the floor of the red chamber yesterday when he said the NNPCL team had been consistently shunning his panel’s summons over the matter.
The Senate, approved the exchange rate projection of 1,400 to a dollar for the 2025-2027 with a provision for review in early 2025, based on prevailing monetary and fiscal policies.
The upper chamber also resolved that any excess on the official figure would be used for debt servicing.
In its resolutions, the Senate also adopted inflation rate projections of 15.75, 14.21 and 10.04 per cent for 2025, 2026 and 2017 respectively.
Part of the resolutions read, “The 2025 Federal Government of Nigeria budget proposed spending of N47.9trilion of which N34.82 trillion is retained. New borrowings stood at N9.22tn, made up of both domestic and foreign borrowings.
“Capital expenditure is projected at N16.48 trillion naira with statutory transfers standing at 4.26 trillion naira and sinking funds projected at N430.27billion.
“Debt service was valued at N15.38 trillion; pensions, gratuities
and retirees’ benefits stood at N1.443 trillion and fiscal deficit at NGN13.08 trillion.
“That the Capital expenditure is projected at N16.48 trillion which is exclusive of transfers. Statutory transfers stand at N4.26 trillion, while Sinking Fund is projected at N430.27 billion.
“The Committee approves the respective figures for total recurrent (non-debt) at N14.21 trillion; special intervention for recurrent and capital is at NGN200 billion and N7 billion.
“That the National Assembly do approves the Promissory Note Programme and Bond Issuance to settle outstanding claims and liabilities of Federal Government owed to States, high priority judgments as well as liabilities incurred by federal ministries, department and agencies on behalf
of Government.
“That the Committee recommends that a quarterly investigative hearing with revenue generating agencies to track their compliance with the Fiscal Responsibility Act and punish those in clear contravention of the Act.
“That the Committee on Finance review and initiate inquiry into the implementation of the Nigerian Export Supervision Scheme (NESS) Act, specifically focusing on the inspection and monitoring of
oil and gas exports by the Ministry of Finance and the Central Bank of Nigeria (CBN).
“This is to ensure effectiveness, compliance, and oversight mechanisms under the Act, identify gaps or challenges,
and enhance revenue for the Government, through transparency, accountability and efficiency of export supervision in line with national economic objectives.
“That the Committees on Finance and Customs to initiate an investigative inquiry into the operations of the Import Duty Exemption Certificate (IDEC) programme, with a focus on the administration of
import waivers and their impact on revenue losses by the Ministry of Finance and the Nigeria Customs Service.
“The committee will evaluate compliance, identify systemic gaps or irregularities, and
recommend measures to enhance transparency, accountability and optimize revenue generation for
the nation.
“That the Committee recommends that a performance metrics be established for MDAs with poor financial reporting standards and mandate regular independent audits of their accounts to ensure compliance.
“That the projected oil benchmark prices are $75, $76.2 and $75.3 per barrel be approved for 2025, 2026 and 2027 respectively.
“That the three-year projections for domestic crude oil production had a significant increase from
1.78 mbpd in the preceding year to 2.06, 2.10 and 2.35 for the subsequent years of 2025, 2026 and 2027 be approved.
“That the National Assembly, through its Committees on Finance, National Planning and other relevant Committees should carry out in-depth investigation of such agreements by the NNPC, NLNG and Immigration Services with a view to reconcile remittances to the Federation Account.
“That the Committees on Finance, Petroleum Upstream, Downstream, and Gas are tasked to investigate reports from the Revenue Mobilization, Allocation, and Fiscal Responsibility
Commission alleging that the NNPC withheld ₦8.48 trillion as claimed subsidies for petrol.
“Additionally, the investigation will address the NEITI report stating that NNPC failed to remit $2billion (₦3.6 trillion) in taxes to the Federal Government.

“The committees are further directed to
verify the total cumulative amount of unremitted revenue (under-recovery) from the sale of Premium Motor Spirit (PMS) by the NNPC between 2020 and 2023.
“That the GDP growth rate which is projected at 4.6%, 4.4% and 5.5% for years 2025, 2026 and 2027 respectively, be approved.
“That the projected exchange rate which stands at NGN1400/USD for years 2025, 2026 and 2027 be approved subject however to review in early 2025 according to monetary and fiscal policies
“That the Inflation rates projections which are 15.75%, 14.21% and 10.04% for 2025, 2026 and 2027, be approved;
“That the Federal Government of Nigeria Budget proposed spending stands at N47.9 trillion, of which N34.82 trillion was retained.
“New borrowings stood at NGN9.22 trillion which constitutes both domestic and foreign borrowings; debt service was valued at N15.38 trillion.
“Pensions, gratuities and retirees’ benefits stood at N1.443 trillion and fiscal deficit at N13.08 trillion.
“That the Capital expenditure is projected at NGN16.48 trillion which is exclusive of transfers statutory transfers stand at NGN4.26 trillion while Sinking Fund is projected at N430.27 billion.
“That the Committee approves the respective figures for total recurrent (non-debt) at N14.21
trillion; special intervention for recurrent and capital is at N200 billion and N7 billion.
“That the National Assembly do approve the Promissory Note Programme and Bond Issuance to settle outstanding claims and liabilities of Federal Government owed to States, high priority judgments as well as liabilities incurred by Federal Ministries, Department and Agencies on behalf
of Government.
“That the Committee recommends that a quarterly investigative hearing with revenue generating agencies to track their compliance with the Fiscal Responsibility Act and punish those in clear
contravention of the Act,” among others.
During the debate on the report, the lawmakers also demanded a reduction in the petrol prices against the backdrop of the commencement of the Port Harcourt Refinery.
Chairman of the Senate Committee on Appropriations, Senator Solomon Adeola, noted that the Federal Government’s Compressed Natural Gas initiative was part of the underlying imperative for the adoption of the N1, 400 to one dollar.
He said, “With the functioning of our refineries the demand for Forex will drop.

“With the CNG initiative, Nigerians will have an option when they want to embark on a journey.

“If you leave Benin for Lagos, the amount of fuel is about 130 thousand but with CNG you can’t use more than 48 thousand Naira. Another issue to be addressed is the recurrent to-capital ratio which is very high.
Senator Yahaya Abdullahi, (PDP, Kebbi North), stressed the need to support the manufacturing industries if the projections of the MTEF are to be achieved.

Senate

Senate steps Into Benue Judicial Crisis

Published

2 days ago

February 20, 2025

National Update

Abba Moro

****Abba Moro Leads Charge Against Unconstitutional Removal of Chief Judge

The Nigerian Senate has taken a firm stand on the ongoing constitutional crisis in Benue State following the controversial removal of the Chief Judge, Justice Maurice Ikpambese, by the State House of Assembly.

Leading the charge, Senate Minority Leader Abba Moro decried the move as an illegal affront to the Nigerian Constitution.
During a heated session, Moro, alongside other lawmakers from Benue, condemned the action, emphasizing that only the National Judicial Council (NJC) has the constitutional authority to remove a Chief Judge.

The Senate resolved to back the NJC in its constitutional role, invite the Speaker and Majority Leader of the Benue Assembly for explanations, and refer the matter to its Judiciary Committee for further investigation.
A motion to invoke Section 11(4) of the Constitution to take over the affairs of the State Assembly was, however, rejected.

Senate President Godswill Akpabio praised the bipartisan approach to the issue, noting that even APC senators from Benue joined Moro, a PDP senator, in defending constitutional order. The Senate urged swift resolution to prevent further escalation, especially following reports of arson at the State High Court premises.

The Judiciary Committee has been mandated to report back within two weeks as the nation watches closely how this legal battle unfolds.

Senate

Senate in Turmoil as Natasha Akpoti-Uduaghan Protests Seat Reassignment

Published

2 days ago

February 20, 2025

National Update

A tense moment unfolded in the Senate on Thursday as Senator Natasha Akpoti-Uduaghan (Kogi Central) protested the reassignment of her seat, leading to a heated confrontation during plenary.

The drama began when Akpoti-Uduaghan arrived to find her nameplate removed and her seat reassigned without prior notice. Outraged, she immediately voiced her objections, demanding an explanation for what she perceived as an unjustified move.

Citing Order 10 of the Senate Standing Rules, which protects members’ privileges, she sought recognition from Senate President Godswill Akpabio to express her concerns. However, Akpabio denied her request, further escalating tensions.

As the protest intensified, security officials, including the Sergeant-at-Arms, were called in to restore order. Senate Leader Opeyemi Bamidele (Ekiti Central) and other senators intervened to de-escalate the situation, allowing plenary to resume.

Later, Senator Isah Jibrin (Kogi East) invoked Order 42, which allows for personal explanations, to clarify that the seat reassignments were a routine procedural matter following recent resignations and reconfigurations within the Senate. He urged Akpoti-Uduaghan to accept the change in good faith, emphasizing that such adjustments are standard practice.

“I appeal that we do not escalate this matter beyond the chamber. Seat reallocation is a normal process, and we should not let it create unnecessary division,” Jibrin said.

Senator Karimi Sunday (Kogi West), Chairman of the Senate Committee on Services, also weighed in, raising a point under Order 14, which governs privileges and discipline. He expressed displeasure that Akpoti-Uduaghan had singled him out during her protest but stated that he chose restraint over confrontation.

In his ruling, Senate President Akpabio urged all senators to remain calm and foster reconciliation. He emphasized that seat allocations are governed by Senate rules and are subject to change when necessary.

“I want the public to understand that our proceedings follow established rules and the Constitution. Seat reallocation is a routine practice, not an act of bias or exclusion,” Akpabio stated.

Citing Section 6(1) and (2) of the Senate Standing Orders, he reiterated that while senators must speak from designated seats, these assignments can be modified at the Senate President’s discretion. He urged all parties to “temper justice with mercy” and focus on their legislative responsibilities.

With the issue seemingly resolved, the Senate moved on to other legislative business. However, the incident highlighted the underlying tensions among lawmakers and the ongoing challenges of maintaining order in Nigeria’s upper legislative chamber.

Senate

Senate Announces Dates For Public Hearing on Key Tax Reform Bills

Published

3 days ago

February 19, 2025

National Update

The Senate Committee on Finance has scheduled a two-day public hearing on four critical tax reform bills aimed at restructuring Nigeria’s tax administration and enhancing government revenue.
Chairman of the Committee, Senator Sani Musa, made this announcement after a briefing on Wednesday regarding the role of the Ministry of Finance Incorporated (MOFI) in managing the federal government’s assets.
He acknowledged MOFI’s efforts in implementing economic reforms and highlighted areas for improvement, which the institution has committed to addressing.
Following the briefing, the committee held a closed-door session, where members unanimously agreed on key aspects of the upcoming public hearing, scheduled for February 24 and 25, 2025.

Senator Musa said the hearing, which will be open to all stakeholders, will focus on Joint Revenue Board Establishment Reform Bill, Nigerian Revenue Services Bill, Nigerian Tax Administration Bill and the Nigerian Tax Bill
He emphasized that these reforms aim to streamline tax collection, improve efficiency, and boost government revenue to support infrastructure, education, and economic development.
“We are committed to ensuring a transparent and inclusive legislative process. This public hearing will provide an opportunity for stakeholders—including government agencies, business leaders, tax professionals, and civil society organizations—to contribute to shaping Nigeria’s tax future,” he said.

The Senate has extended invitations to several key institutions, including Federal Ministry of Finance,Coordinating Minister of the Economy, Federal Inland Revenue Service (FIRS),Attorney General of the Federation, Ministry of Trade and Investment,National Bureau of Statistics (NBS), Religious and professional bodies among others.

“These bills, submitted by President Bola Ahmed Tinubu in 2024, have successfully passed their second readings in both chambers of the National Assembly and are now set for public scrutiny,” Senator Musa noted.

Senator Musa reassured the public that all concerns will be addressed, adding that extensive consultations have already taken place with relevant stakeholders to ensure a smooth and effective tax reform process.
“This is a national assignment, and we want to hear from all Nigerians. The goal is to implement a tax system that works for businesses, individuals, and the government,” he stated.
He further explained that the proposed tax reforms align with President Tinubu’s vision to strengthen Nigeria’s economy and enhance revenue generation without overburdening citizens.
“We believe these reforms will create a more efficient, transparent, and business-friendly tax system that will ultimately drive economic growth,” Senator Musa said.

The public hearing will take place at the National Assembly, Abuja, and will be open to all interested parties. The Senate encourages submissions from individuals and organizations with insights on improving Nigeria’s tax administration.
Senator Musa assured that the National Assembly remains independent in this process.
“President Tinubu has made it clear that he will not interfere. It is our duty as legislators to enact laws that will benefit the country economically,” he affirmed.
With this announcement, the Senate is calling on Nigerians to actively participate in shaping a fair, effective, and sustainable tax system for the country’s future.