Catalogue of looting and brigandage in Nigeria, as the real subsidies are not for the poor, but for the rich class – Femi Falana SAN
https://247ureports.com/2023/06/catalogue-of-looting-and-brigandage-in-nigeria-as-the-real-subsidies-are-not-for-the-poor-but-for-the-rich-class-femi-falana-san/
-
Globally, subsidies, whether for food, transportation, energy or housing, are part of good governance. So, the issue is not subsidies but who benefit from them. In Nigeria, subsidies are primarily of the rich, by the rich and for the rich. I will highlight a few, how they are being manipulated and how huge sums of money can be recovered not just to subsidize fuel but also provide funds for development.

1. *Diversion of N40 billion from Federation Account*

A company, Continental Transfert Technique had been hired by the Ministry of Interior to collect the Combined Expatriate Residence Permit and Alien Card (CERPAC) Fee of $2,000 per annum from every expatriate in Nigeria. The revenue from 2019 comes to an average of N40 billion per annum. This collection which violates Section 162 of the Constitution and provisions of the Immigration Act 2015, is then shared on percentages of Federal Government, 30, Interior Ministry, 7, Immigration Service, and Continental Transfert Technique, 58 per-cent.

We challenged this illegality at the Federal High Court and won the cases. The court directed the NIS to collect the funds henceforth and remit same to the Federation Account. But the contractor and the federal government appealed against the judgment and have continued to share the N40 billion per annum.

2. *Additional Revenue of $1.5 billion payable to Federation Account*

In July 2015, I drew the attention of the Federal Government to the fact that the 15-year fiscal incentives given to the oil and gas companies operating under the Deep Offshore and Inland Basin Production Sharing Contracts Act had expired in June 2014. When the Federal Government ignored our request, we drafted a Bill for the amendment of the law. The Bill which was adopted and sponsored by Senator T. Orji scaled the first reading in the Senate but was not passed before the dissolution of the 8th National Assembly.