National Assembly Weighs In On Failed Projects, Economic Policy

• Senate Focussed On Best Approach To Commercialize Moribund Refineries
• Reps Summon CBN Gov On FX Policy On 43 Items

The National Assembly is set to weigh in on several projects begging for attention in the country as well as some economic policies of the Federal Government of Nigeria.

While the Senate is poised to scrutinize the whopping sum of N11.35tr spent on maintaining the nation’s refineries without any tangible results, the lower chamber on the other hand has extended an invitation to the Governor of the Central Bank of Nigeria (CBN) Olayemi Cardoso to come and explain the economic implications of the lifting of the Foreign Exchange ban on 43 items in the country.

The Matrix recalls that spanning a period of 13 years from 2010 and 2023, Nigeria spent N11.35tr on maintaining state-owned refineries in the country, yet the country still imports refined petroleum products, a development which has put severe pressure on the nation’s currency.

To unravel this, the Senate mandated its Committee on Downstream Petroleum to investigate all contracts awarded for the rehabilitation of all the state-owned refineries between 2010 and 2023.

The Upper Chamber also plan to ascertain the level of progress made on the ongoing works in all refineries in order to forestall further waste and corruption.

Also, in a bid to make the refineries commercially viable, the Committee is set to interrogate the Federal Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigerian National Petroleum Company Limited (NNPCL), Bureau of Public Enterprises (BPE) on the best approach to commercializing and/or ensuring profitability of the state-owned Refineries; and Invite the NNPCL, NUPRC and LNG to explain the nation’s preparation for Green Energy Sources in line with the Paris Agreement on Climate Change.

The Senate also expressed displeasure at what they perceived to be sabotage of the Federal Government’s effort to resuscitate the nation’s refineries, in spite of N11.35 trillion spent on maintenance of the moribund refineries.

While the upper chamber is dealing with that, the lower chamber will tun its attention to the decision of the CBN to lift FX restriction for the importation of 43 items which were previously restricted from accessing FX.

In 2015, the then CBN Gov, Godwin Emefiele had imposed FX restriction on 43 items from accessing FX from the I&E window, saying they were not valid for foreign exchange and could be produced in the country.

Some of the items affected include rice, cement, palm kernel, meat and processed meat products, poultry, soap, and cosmetics among others.

However, two weeks ago, the apex bank lifted the forex ban on the items and also promised to intervene in the FX market from “time to time”.

“As part of its responsibility to ensure price stability, the CBN will boost liquidity in the Nigerian Foreign Exchange Market by interventions from time to time. As market liquidity improves, these CBN interventions will gradually decrease.

“Importers of all the 43 items previously restricted by the 2015 Circular referenced TED/FEMFPC/GEN/O1/010 and its addendums are now allowed to purchase foreign exchange in the Nigerian Foreign Exchange Market.”

Reacting to this development in an adoption of a motion of urgent public importance by a member, Sada Soli, Federal Representative representing Jibia/Kaita Constituency Katsina State, he called for clarification on the policy and its implications on the economy.

The lawmaker drew the attention of the House to the fact that some of the initially prohibited items have tariffs to protect local industries.

Further worried that Nigeria will not be competitive in the African Continental Free Trade Area if its markets are flooded with imported finished goods, the House resolved that its relevant committees should invite the Central Bank governor for further explanation.

 It is left to be seen how these interventions by the Lawmakers will pan out in the coming days.