Members of the House of Representatives on resumption for the third year in the 8th Assembly on Tuesday opposed a motion which seeks to provide grants to indigenous oil companies to enable them compete favourably with multinational companies.
The lawmakers during the plenary session also opposed a motion which seeks to probe the civil service recruitment scandal.
In his lead debate, Benjamin Ikolo (APGA-Imo), stressed the need for the joint House Committee on Petroleum Resources (Upstream & Downstream) to determine the measures that would enable indigenous oil/service companies to receive bailout grants or loans at a single digit interest rate from the Central Bank of Nigeria (CBN) to enable them compete favourably with foreign oil companies in bidding for big contracts from the Nigerian National Petroleum Corporation (NNPC).
“Oil is the nation’s foremost revenue earner and that indigenous oil/service companies are unable to compete with foreign oil companies in bidding for big contracts from the NNPC as they do not have the funds to make the bids and undertake the jobs even when they have the expertise.
“The inability of indigenous oil/service companies to obtain those big contracts that could grow them into big companies that would provide services for the country and offer employment to many citizens has left the country to perpetually depend on foreign companies for exploration and exploitation of oil and they take the enormous profits back to their countries of origin.
“If the Federal Government provides grants to indigenous oil/service and other companies to enable them obtain big contracts from the NNPC and other sources, the companies will eventually grow to compete favourably with foreign companies and ultimately plow back the profits into the nation’s economy for the overall benefit of the country,” the Imo lawmaker said.
In a swift reaction to the intent of the motion, Nicholas Osai (PDP-Delta), warned that the motion conflicts with the diversification policy or the present administration.
“The body of this motion disagrees with the diversification policies of this administration. Grants should be given to farmers, productive Nigerians not bailing out oil investors.
“If they want Nigerians to participate in the oil sector, create the enabling environment for them to buy shares from the existing oil company, not giving them grants,” Ossai, who doubles ad Chairman, House Committee on Ethics and Privileges urged.
On his part, Wale Raji (APC-Lagos), called for holistic review of the cost of funds in the country, disapproved of the sectorial solutions such as proposed by the sponsor of the motion.
He said: “There is no doubt there is need to support indigenous company, and the main issue is the cost of funds, which is not limited to the oil sector,” adding that the “focus should be entirety not piece meal approach.”
Leading debate on the civil service recruitment scandal, Henry Nwawuba (PDP-Imo) alleged many Nigerian youths from all over the federation who applied online for the 2016/2017 recruitment exercise were deprived of participating in a competitive screening and interview in accordance with best practice.
In a related development, the House urged Federal Government to commence the dredging of River Benue so as to curb the perennial flood disaster ravaging the country.
The House also urged the National Emergency Management Agency (NEMA) to send relief materials to victims of flood, most of whom are currently in camps in Makurdi, Benue State.
The resolution was passed sequel to the adoption of a motion moved by Emmanuel Oker-Jev (APC-Benue) and three others.
Oker-Jev, chairman, House Committee on Rules and Business the report released by the Benue State Emergency Management Agency (BSEMA) that the current flood in Makurdi has displaced over 100,000 people, thereby rendering them homeless, led to the death of three persons and with over 100,000 houses devastated, while farmlands and food storage facilities were washed away.
KEHINDE AKINTOLA, Abuja
