The Senate on Thursday stepped down consideration of report of Road Funds Bill submitted to it by the Senate Committee on Works.
In the report , the Senate Committee on Works proposed to impose N5 charges on petroleum products in the country as a way of raising revenue for maintenance of roads.
Trouble began with the contentious bill last Thursday when it was reported that Senate panel proposed N5 charges on every litre of imported petroleum product.
But Senator Kabiru Gaya in his submission while presenting the report of the Senate Committee on Works on the proposed charges, had argued that the planed N5 levy on every litre of petroleum product would not in any way lead to increase in the price of fuel as the charges will be deducted from source within the existing petroleum price template approved by the Petroleum Products Pricing and Regulatory Agency and being used by importers/marketers .
Gaya said: “There was media report last week that we are increasing fuel by N5. That is not true. We intend to remove the N5 from the current N145 per litre. If this bill is passed, the government will realise about N94 billion per annum into the National Road Funds for road maintenance across the country.”
But many of the Senators were not convinced by Gaya’s submission by insisting that the proposal would be injurious to many Nigerians economically and vehemently kicked against the bill being passed for third reading by the Senate.
First to kick against it was Senator Kabiru Marafa, the Chairman, Senate Committee on Petroleum (Downstream), who declared that the proposal will further impoverished Nigerians.
According to Marafa, sourcing revenues for road maintenance in the country should be limited to the road sector itself and not extended to other areas as the proposed N5 charges on petroleum products would regardless of the explanations given by Senator Gaya lead to increase in the price of fuel and invariably worsened the hardship being faced by Nigerians.
He said: “My comments are on the method of funding. The claims that the N5 charge has already been captured are not correct. Taking another N5 from refined products will add to the suffering of the people.
“This will bring untold hardship to the people of Nigeria. We have already addressed something like this in the Petroleum Industry Governance Bill (PIGB). I oppose this recommendation very vehemently.”
It was a submission also supported by the Senate Minority Leader, Senator Godswill Akpabio (PDP Akwa Ibom North West), who said he had great reservations on the proposals and urged the Senate to be very cautious in handling the bill.
“I want to align myself with the submissions of other speakers. I have reservations about the bill. I do not want the chamber to just pass a law and it will not be effective. I had an experience with the Police Funds when I was a governor. Throughout my time as governor, I did not get any fund,” Akpabio said.