THE Federal Government is to spend N6.2 billion on an awareness campaign for the Petroleum Industry Bill (PIB).
The Minister of Petroleum Resources, Dieziani Alison-Madueke, disclosed this to the National Assembly's Joint Committee on Petroleum Resources (Downstream), Petroleum Resources (Upstream) and Gas, at the 2013 budget defence Thursday.
The minister also disclosed that out of the N2.2 billion allocated to the ministry in the 2012 capital appropriation, only N820 million representing about 41 per cent had so far been released. She added that of the released figure, N759 million, representing 93 per cent had been utilised.
Reacting to the issue of low budgetary implementation in the 2012 appropriation, the Emmanuel Paulkar-led Committee flayed the Minister of Finance, Ngozi Okonjo-Iweala, for the executive's reluctance to release money for the efficient execution of the budget.
Stressing that releasing only 41 per cent of the budget only a month to the end of the fiscal year was unacceptable. The committee expressed worry that even the ministry responsible for revenue generation for the country could suffer a similar fate as other sectors of the economy. This was irrespective of the fact that oil sold far above the benchmark in the 2012 budget.
"Your ministry generates revenue for the country; it is surprising that your appropriation was not fully released. Same thing applied to all sectors of the economy in the 2012 budget in spite of the fact that oil benchmark has been below sale price," he said.
However, while some members of the committee blamed the minister for the overall low implementation of the budget, others attempted to exonerate her on the grounds that the poor release of the budget was the hallmark of the 2012 fiscal year.
"The problem is from the Ministry of Finance. I don't think it is wise holding Ministries, Departments and Agencies (MDAs) responsible for low performance since money was not released to them."
Thus, a question put forward by a member of the committee from the House of Representatives on the likely sanctions for low performance of subsequent budgets was over-ruled by the Chairman of the joint committee, Emmanuel Paulkar.
Despite the shortfall in the budget released, the minister said she had succeeded in reducing oil theft from 150,000 barrels to 100,000 a day, gas flaring from 63 per cent to 21 per cent as well as improved gas supply to the electricity sector, which has resulted in an improved power supply.
Meanwhile, the Senate has suspended plenary sitting till December 11 to allow committees complete their works on the appropriation. Before the adjournment, a Conference Report on the Money Laundering Act 2011 (Amendment Bill 2012) was adopted.
The Senate and the House of Representatives had earlier passed the Money Laundering Act on October 17 and October 9, in that order with differences and consequently set up a committee to harmonise the differences.
Source: http://odili.net/news/source/2012/nov/30/18.html
