Fuel Price Hike: Reps ask FG to introduce “targeted subsidies” on petrol, cooking gas

The House of Representatives has asked the federal government to reverse the pump price of petrol and cooking gas through targeted subsidy.

This resolution followed a motion of urgent importance moved by the Minority Leader, Kingsley Chinda (PDP, Rivers) and 111 others during Wednesday’s plenary session.

Last week, the pump price of petrol rose to N998 and N1,030 per litre after NNPC Limited announced the end of the sole offtaker arrangement with the Dangote Refinery.
Moving the motion on behalf of the sponsors, the Deputy Minority Leader, Aliyu Madaki (NNPP, Kano), stated that “the rising cost of petrol and cooking gas poses a significant threat to the livelihood of millions of Nigerians. The unchecked inflationary pressure caused by the increased prices could lead to social unrest, increased poverty, and other negative long-term effects.”

He further warned, “Unless urgent and pragmatic steps are taken to control the rising cost of petrol and cooking gas, the nation will face an economic crisis, resulting in increased crime rates and mortality.”

Sada Soli (APC, Katsina) raised a point of order, noting that a joint committee of the National Assembly is already reviewing the entire downstream sector and the subsidy regime.

However, this was met with opposition from the minority bench, who attempted to shout Mr Soli down.

Speaking in support of the motion, the Minority Whip, Isa Ali (PDP, Gombe), argued that petrol prices impact all sectors of the economy, particularly inflation.

“The people are suffering due to the fuel price increase. The government should allow the people to breathe and should not remove the little oxygen cylinder giving Nigerians relief.

“The government should listen to the cries of the people and take steps to review any policy that negatively affects Nigerians. Those who signed this motion believe that Nigerians are suffering,” he said.

In his contribution, Yusuf Gagdi (APC, Plateau) pointed out that deregulation of the downstream sector is a product of the Petroleum Industry Act (PIA) and cautioned against playing politics with the price of petrol.

However, Mr Chinda countered this, stating that “laws are made for man, not man for laws.” He emphasised that the intention behind the PIA was not to allow unchecked price hikes for petrol.

“We yearn for deregulation, but how do we implement it without negatively affecting the people? We must consider Nigerians in the process of implementing such laws.”

Prayers of the Motion

The motion urged the federal government to reverse the recent pump price hikes and take immediate steps to stabilise petrol and cooking gas prices through targeted interventions, such as temporary price relief measures, tax reductions, or subsidies for low-income households.

It also called on the Nigerian National Petroleum Corporation (NNPC), the Ministry of Petroleum Resources, and other relevant agencies to expedite the repair and maintenance of domestic refineries and increase local refining capacity to reduce reliance on imported refined petroleum products.

Additionally, the motion urged the Central Bank of Nigeria (CBN) to implement monetary policies to mitigate the adverse effects of fuel price hikes on inflation, particularly concerning essential goods and services.

The motion further called on the federal government to explore alternative energy sources and diversify the country’s energy mix, promoting sustainable and affordable renewable energy solutions.

State governments were also encouraged to adopt policies that alleviate the financial burden on citizens, such as waiving taxes or levies on transportation and goods affected by high fuel costs.

Lastly, the House Committees on Petroleum Downstream and Legislative Compliance were mandated to ensure compliance and report back to the House within two weeks for further legislative action.

Debates over the Prayers

There was a prolonged debate over the prayers in the motion, with the ruling APC lawmakers calling for amendments to allow the Joint Committee to review some of the issues raised.

Olumide Osoba (APC, Ogun) and Patrick Umoh (APC, Akwa-Ibom) argued that the motion should be referred to the Joint Committee.

The opposition strongly opposed this, arguing that some matters required urgent action.

Speaker Abbas Tajudeen intervened, appealing to the opposition to allow the motion to be referred to the Joint Committee and assuring them that the committee would consider the issues raised.

Reluctantly, Mr Chinda moved the amendment, which was seconded by Abdussamad Dasuki (PDP, Sokoto).

The motion was subsequently passed as amended.

Procedural Flaws

Once again, the House failed to properly address amendments during the debate. Although the amendment to refer the motion to the Joint Committee was adopted, they did not explicitly state that “other prayers” should be deleted.

This is not the first time the House has made this procedural error, later blaming the media for “erroneous reporting.”

In July, during the debate on the Samoa Agreement, the House made a similar mistake by amending prayers in a motion without deleting existing prayers. The House Spokesperson, Akin Rotimi, later issued a disclaimer stating that the House did not “ask the government to suspend the agreement.”

Recently, during consideration of the motion on the GCON, the House repeated this blunder and again blamed the media for “erroneous reporting.”