The Nigeria's red chamber on Thursday called for a total end to the federal goverment's subsidy regime, projecting a grave damage to the economy if same persists.
The alarm was sounded as report confirmed the nation has spent well over N11 trillion on oil subsidy payment in six years.
The senators also sued for the building of new refineries to aid the subsidy regime end.
The call came after the consideration of the report presented by the Senate's Committee on Petroleum Downstream led by Senator Senator Kabiru Marafa (APC, Zamfara Central) which undertook, amongst other things, the task of finding out FG's Contractual Obligations to Petroleum Marketers and the government's use of bond issuance to settle debts owed to them.
The Marafa commitee had found out many dissimilarities in submissions made by the Federal Ministry of Finance, Petroleum Products Pricing Regulatory Agency, PPPRA, and oil marketers.
According to him, all the subsidy arrears’ claims were based on three inter-related elements, namely subsidy, forex differentials and bank interests on unpaid claims which were inconsistent amongst the three players.
Meanwhile, the Senate, approved the payment of N129 billion as subsidy arrear claims to 67 petroleum marketers based on the Marafa's report.
Some of the oil marketers are AA Rano, Ascon, Aiteo, Total, MRS Oil & Gas Limited, Sahara Energy, Oando PLC, A-Z Petroleum, Masters Energy, Northwest Petroleum, Fresh Energy, Forte Oil, Integrated Oil among others.
It would be recalled that the Senate had on Tuesday approved N69 billion as oil subsidy claim for Premium Motor Spirit for 19 oil marketers.
The Senate has, however, adjourned till June 6 for its valedictory session.
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