The Socio-Economic Rights and Accountability Project has urged President Bola Ahmed Tinubu to use his good offices and leadership position to urgently publish details of spending of about N400bn so far saved as a result of the removal of subsidy on Premium Motor Spirit popularly known as petrol.

He was urged by SERAP to “provide details of the plans on how subsequent savings from the removal of petroleum subsidy would be used, including specific projects on which the funds would be spent, and the mechanisms that have been put in place to ensure that any such savings are not embezzled, misappropriated, or diverted into private pockets.”

According to reports, the Federal Government saved N400 billion in the four weeks following the implementation of the policy on the removal of petrol subsidy payments.

In the letter dated July 1, 2023, and signed by SERAP deputy director Kolawole Oluwadare, the organisation said, “Your government has a legal responsibility to ensure that the savings from the removal of subsidy on petrol are spent solely for the benefit of the 137 million poor Nigerians who are bearing the brunt of the removal.

“Prevention of corruption in the spending of savings from the removal of subsidy on petrol and preventing and addressing the challenges caused by the removal are serious and legitimate public interests.”

According to SERAP, “Nigerians have the right to know how the savings are spent. Publishing the details of the spending of the savings would promote transparency, accountability, and reduce the risks of corruption in the spending of the funds.”

The letter, read in part, “SERAP is concerned that the savings from subsidy removal may be embezzled, misappropriated or diverted into private pockets.”

“Opacity in the spending of the savings from subsidy removal would have negative impacts on the fundamental interests of the citizens and the public interest.”

“We would be grateful if the recommended measures are taken within 7 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall consider appropriate legal actions to compel your government to comply with our request in the public interest.”

“Unless the government is transparent and accountable to Nigerians in how it spends the savings from the removal of subsidy on petrol, the removal will continue to undermine the rights of Nigerians, and increase their vulnerability to poverty and social deprivation.”

“Transparency would ensure that the funds saved from the removal of subsidy are not diverted into private pockets, and increase public trust and confidence that these savings would be used to benefit Nigerians.”

“The implementation of the National Social Safety Net Programme and spending on the programme have been mostly shrouded in secrecy.”

“Publishing the details of the spending of the N400bn and other savings from the removal of subsidy would also ensure that persons with public responsibilities are answerable to the people for the performance of their duties including the management of the funds.”

“Transparency and accountability in the spending details of the N400 billion saved as a result of the removal of subsidy on petrol, and on the spending of subsequent savings from the removal would mean that the savings can help poor Nigerians to overcome the effects of such removal.”

“It would also help to avoid a morally repugnant result of double jeopardy on poor and socially and economically vulnerable Nigerians.”

The lack of transparency and accountability in the spending of savings from the removal of subsidy on petrol and the resulting human costs would directly threaten fundamental human rights that your government has an obligation to protect.”

“Your government has the legal obligations to address the effects of subsidy removal on the human rights of 137 million poor Nigerians, and to prevent and address some of the direct consequences that the removal may reap on human rights, especially given the disproportionate impact on these Nigerians.”

“SERAP also urges you to promptly instruct Independent Corrupt Practices and Other Related Offences Commission and Economic and Financial Crimes Commission to monitor the spending of all savings from subsidy removal.”

“SERAP notes that the removal of subsidy on petrol continues to negatively and disproportionately affect poor Nigerians, undermining their right to an adequate standard of living.”

“Your government has a positive obligation to protect individuals against the threat posed to human rights by the removal of subsidy on petrol. Your government also has legal obligations to effectively address the aftermath of subsidy removal.”

“SERAP is seriously concerned that years of allegations of corruption and mismanagement in the spending of public funds and entrenched impunity of perpetrators have undermined public trust and confidence in governments at all levels.”

“The Freedom of Information Act, Section 39 of the Nigerian Constitution, article 9 of the African Charter on Human and Peoples’ Rights and article 19 of the International Covenant on Civil and Political Rights guarantee to everyone the right to information, including the details of how the N400bn and other savings from the removal of subsidy on petrol would be spent.”

“By the combined reading of the provisions of the Nigerian Constitution 1999 [as amended], the Freedom of Information Act 2011, and the African Charter on Human and Peoples’ Rights, there are transparency obligations imposed on your government to widely publish the details of how the N400bn and other savings from the removal of subsidy on petrol are spent.”

“The Nigerian Constitution, Freedom of Information Act, and the country’s anti-corruption and human rights obligations rest on the principle that citizens should have access to information regarding their government’s activities.”

“Section 13 of the Nigerian Constitution imposes clear responsibility on your government to conform to, observe and apply the provisions of Chapter 2 of the constitution. Section 15(5) imposes the responsibility on your government to “abolish all corrupt practices and abuse of power” in the country.”

“Under Section 16(1) of the Constitution, your government has a responsibility to ‘secure the maximum welfare, freedom and happiness of every citizen on the basis of social justice and equality of status and opportunity.’”

“Section 16(2) further provides that, ‘the material resources of the nation are harnessed and distributed as best as possible to serve the common good.’”

“Similarly, articles 5 and 9 of the UN Convention against Corruption also impose legal obligations on your government to ensure proper management of public affairs and public funds, and to promote sound and transparent administration of public affairs.”

About 2,000 houses located in the Trademore area of the Federal Capital Territory might be demolished on Monday by the Federal Capital Development Authority.

The President of the Trademore Resident Association, Adewale Adenaike, in an exclusive interview with one of our correspondents, said about 40,000 residents would be displaced if the planned demolition exercise was carried out.

Adenaike, however, noted that alternative solutions could be explored as he debunked the claim that the area where the estate is situated was an illegal settlement.

He said “We have been reliably informed that the authorities are coming tomorrow (today) to demolish 2000 houses and displaced over 40,000 Nigerians living in the area. They have described this place as an illegal settlement but during the last elections, we had three polling units here. So, they can come to collect our votes and request payment for electricity bills but we are illegal?

“Years ago, a section of this estate was commissioned by the former Vice President, Namadi Sambo; high-ranking officers are staying in this area, and this is what the FCDA has termed as a disaster zone because they are unapproved. Where were Development Control, FCTA and FCDA when all this development was taking place in an area they termed as illegal?

“Currently, 99 per cent of houses in this area are financed by Federal Mortgage Bank which is owned by the Federal Government and the payments are ongoing. So, they financed an illegal settlement.”

The FCT authorities had declared the estate located along the Lugbe-Airport Expressway a disaster zone following the unfortunate flooding incident that occurred at the Phase 2 end of the estate after hours of downpour last Friday.

The Director-General of the FCT Emergency Management Agency, Dr Abbas Idriss, said the decision followed the persistent threat to life from flooding at the estate, adding that the FCT Administration placed a high premium on the lives and properties of residents of the estate.

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In a statement on Sunday, the Executive Secretary, FCDA, Shehu Ahmed, revealed that a police station in Trademore would be demolished and other buildings following its warning to residents to evacuate the area.

“By declaring Trademore a disaster zone, we have told the residents there to evacuate. The police station in Trademore would be demolished. It will go alongside other buildings. We have engaged the FCT Police Command and have provided a suitable place for them to operate from and fight crime,” the statement partly read.

Large consignments of Premium Motor Spirit, popularly called petrol, being imported by major oil marketers, are to hit Nigeria from next week and may force down the price of the commodity, both major and independent dealers stated on Sunday.

It was also gathered that crude oil refiners were currently releasing refined petroleum products on credit to dealers from Nigeria, following the recent unification of the country’s exchange, which boosted the confidence of operators.

This came as the Independent Petroleum Marketers Association of Nigeria told our correspondent that they would compete with the Major Oil Marketers Association of Nigeria and the Nigerian National Petroleum Company Limited on the importation of petrol, stressing that this would crash the cost of PMS.

Before the President, Bola Tinubu, removed subsidy on petrol, the product was solely imported by NNPCL, as other marketers stopped its imports due to their inability to access the United States dollar.

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At the time, oil marketers explained that the NNPCL was accessing the dollar at a lower rate, which was unfair and did not support PMS importation by other dealers.

But with the recent unification of the exchange rate, oil marketers had to join in the importation of petrol and confirmed that the products should be arriving Nigeria from next week.

Asked to state when the products being imported by major marketers would start hitting Nigeria, the Executive Secretary, Major Oil Marketers Association of Nigeria, Clement Isong, replied, “I will simply say between the second and third week of July”

Isong, however, explained that the NNPCL had made a lot of fuel imports, as some of its vessels were still on the way to Nigeria.

“Let me say that NNPCL has imported significantly to prevent the country from running dry. The vessels NNPCL imported are offshore Nigeria, so they have a significant volume, therefore in all circumstances the country will not run dry.

“So the options everybody has is that they can buy from NNPCL ex-depots or they can go and import from Europe or from other places. The assignment is that you compare your price if you buy from NNPCL or import from Europe.

“More or less, the taste of the pudding is in the eating. So do your calculation as the best as you can. But you will only know the full impact when the product is in your tank. If it goes right, it is then that you will know how competitive your price is. The more you do it, the more efficient you become,” Isong stated.

On how marketers were sourcing of forex for imports, the MOMAN officials dealers were accessing the foreign exchange from banks and other sources.

“People access forex from different places. Just that it is easier for some people than others. Some people have strong banks, while others have other means of accessing forex. So everyone plays on their strength and ability to access forex.

“And it must be stated that the floating of the exchange rate is a plus, for instance, some people can go and get credits from their suppliers, while others have LCs (Letters of Credits), means of borrowing, etc.

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“But the most important thing is that there is a unified exchange rate and that makes people more confident in going to import. There is no unfair advantage, where in the past some persons have access to low exchange rates,” Isong stated.

Explaining what he meant by saying some dealers could get credit from suppliers, he said, “If you have a good relationship with your supplier, they can give you products on credit. It is a function of the relationship you have with your supplier.

“Obviously, the way the market works, if you have it on credit you pay a little bit more.”

Also speaking on the issue, the Secretary, IPMAN, Abuja-Suleja, Mohammed Shuaibu, stated that the cost of PMS was bound to go down in the coming weeks, as imports from marketers arrive in Nigeria.

He confirmed that some private depot owners were already cutting down the cost of the commodity, lower than the rate being sold by the NNPCL.

“The sector has been deregulated and, of course, if you have the power you will go and import. It is not going to be only the major marketers, independent marketers are also picking interest and there will be competition.

“And, of course, I know that sooner than later, the price of petrol will be forced down, particularly once the products from marketers start hitting the country from next week. This is because market forces will now determine the price.

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“It is not going to be solely imported by NNPCL again, for instance, this week, the private depots reduced their prices, different from what NNPCL is selling. So there is a reduction lower than what NNPC is selling,” he stated.

Shuaibu said IPMAN was ready to compete with the NNPCL and major marketers to force down the cost of petrol nationwide.

“With time there will be healthy competition. We know major marketers are expecting products in weeks and we will compete with them when our products start coming. This will further reduce petrol price,” he stated.

The IPMAN official also noted that the consumption of petrol had dropped, as the purchasing power of citizens to access the commodity had reduced.

“People are lamenting. The price was raised by over three times its previous cost, coupled with the economic crisis in the country. So the patronage has been very, very poor,” he stated.

Last month, the Chief Executive, Nigeria Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, said some newly licensed importers of petrol were expecting their cargoes in July.

“The market is open already, we have to follow the regulations. So we have rolled out policies that are user-friendly. Some of them (marketers) have already started putting their applications in place. This is because we don’t want to create a gap.

“NNPCL is slowing down on their importation, so we have to have someone who is closing up on that gap that NNPCL is creating in order not to have a shortage in the country.

“But NNPCL is also monitoring the replacements that they have. We agreed that NNPCL will continue to import until such a time when we have a critical mass of other importers,” Ahmed had stated in Abuja.