Senate Rejects N100bn CNG Buses Loan, Warns Tinubu Against Illegal Spending

The Nigerian Senate has issued a warning to President Bola Tinubu, cautioning against illegal spending and encouraging him to seek a supplementary budget for the ambitious Compressed Natural Gas (CNG) initiative, estimated at N100 billion.

The Senate, specifically through its Committee on Gas, led by Senator Jarigbe Jarigbe, called upon the executive branch of government to promptly present a 2023 Supplementary Budget to the National Assembly. This budget is intended to initiate the Compressed Natural Gas project, a move prompted by President Tinubu’s announcement aimed at alleviating the impacts of fuel subsidy removal on Nigerian citizens.

While acknowledging President Tinubu’s commendable efforts with the CNG initiative, the committee’s chairman emphasized the need for lawful financial procedures. He stressed that it would be illegal to utilize taxpayers’ funds or other financial resources without the prior approval of the National Assembly, especially for projects related to the gas value chain.

Senator Jarigbe also discouraged any extra-budgetary spending through ‘Ways and Means,’ emphasizing that the legislature stands ready to support initiatives that benefit the people. He commended President Tinubu’s CNG revolution for vehicles, stating that it would ease the hardships faced by citizens.

“The President should not embark on extra-budgetary expenditure because it would be inconsistent with the provisions of the law,” Senator Jarigbe reiterated.

Furthermore, Senator Jarigbe expressed the Senate’s willingness to support President Tinubu’s programs, emphasizing that a 2023 supplementary budget would be the most appropriate approach. This, he noted, is preferable to the ‘Ways and Means’ method employed in the previous administration, which had caused significant controversy within the Central Bank of Nigeria.

In his Independence Day speech, President Tinubu reiterated his commitment to alleviating the hardships faced by Nigerians. He announced plans to deploy cost-effective and safe CNG buses nationwide, which would operate at lower fuel prices, positively impacting transportation fares. Additionally, he revealed plans to establish training facilities and workshops to empower transport operators and entrepreneurs across the nation.