In an attempt to calm rising tension, the Nigerian Government has postponed till further notice, the removal of fuel subsidy it had earlier proposed to take off by June.
This was revealed on Monday by the Minister of Finance, Budget and National Planning, Zainab Ahmed who said timing of the subsidy removal implementation was wrong due to persistent high cost of things in the country.
Speaking shortly after a meeting convened by President of the Senate, Ahmad Lawan at National Assembly, Abuja, Mrs Ahmed pointed out that there was a need to put some conditions in place such as ensuring that existing local refineries are fully operational and also rolling out of new ones to boost domestic production of petroleum products and avoid reliance on importation, and also consult with stakeholders before ending the programme.
Join our WhatsApp ChannelShe added that the Federal Government had made provisions in the 2022 budget for subsidy payment till June 2022, but realised after the budget was past that the timing was wrong.
“Provision was made in the 2022 budget for subsidy payment from January till June. That suggested that from July, there would be no subsidy.
“The provision was made sequel to the passage of the Petroleum Industry Act which indicated that all petroleum products would be deregulated. Sequel to the passage of the PIA, we went back to amend the fiscal framework to incorporate the subsidy removal.
“However, after the budget was passed, we had consultations with a number of stakeholders and it became clear that the timing was problematic. We discovered that practically, there is still heightened inflation and that the removal of subsidy would further worsen the situation and impose more difficulties on the citizenry.
“Mr President (Muhammadu Buhari), does not want to do that. What we are now doing is to continue with the ongoing discussions and consultations in terms of putting in place a number of measures.
“One of these include the roll-out of the refining capacities of the existing refineries and the new ones which would reduce the amount of products that would be imported into the country.
“We, therefore, need to return to the National Assembly to now amend the budget and make additional provision for subsidy from July 22 to whatever period that we agreed was suitable for the commencement of the total removal,’’ Ahmed stated.
The meeting was also attended by the Minister of State for Petroleum Resources, Timipre Sylva and the Group Managing Director of the NNPC Limited, Mele Kyari.
Sylva said going by the situation of things in the country, it was very clear to all that it’s not feasible implementing the removal of subsidy now.
He added that it was left for the National Assembly to revisit the 2022 Appropriation Act and amend it to accommodate subsidy provisions from July upwards.
It would be recalled that when the Federal Government hinted its intention to remove fuel subsidy, it generated reactions from several quarters who oppose it, on the ground that it would cause untold hardship in the country, given the general high cost of things coupled with other challenges.
READ ALSO: Labour, Buhari Govt Set To Lock Horns Over Fuel Subsidy Removal
Labour groups were already were already mobilizing their members across states to embark on protest if it eventual happens without the government addressing core issues that affect the citizens.
Senate President, Ahmad Lawan during the meeting urged the labour unions to shelve their actions since the government has suspended the subsidy removal implementation till further notice.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
