NEC stops fuel subsidy removal

The National Economic Council (NEC) has caused a u-turn on the issue of the planned petroleum subsidy removal, concluding in its meeting on Thursday that time is not auspicious for the action.

The meeting presided over by its Chairman, Vice President Yemi Osinbajo, deliberated on the matter and resolved that it cannot be removed for now.

But it also agreed on the need to continue discussion on the matter and the necessary preparatory work in conjunction with states and representatives of the in-coming administration.

The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, who disclosed this while briefing correspondents on the outcome of the meeting at the Presidential Villa, Abuja, also affirmed NEC’s position  that it is better to remove the subsidy now rather than later.

She said: “Council agreed that the timing of the removal of fuel subsidy should not be now.

“But that we should continue with all of the preparatory works that need to be done and that this preparatory has to be done in consultation with the states and other key stakeholders including representatives of the incoming administration.

“Council agreed that the fuel subsidy must be removed earlier rather than later because it is not sustainable. We cannot afford it anymore.

“But we have to do it in such a way that the impact of the subsidy is as much as possible, mitigated on the lives of ordinary Nigerians.

“So, this will require looking at alternatives to the fuel subsidy that needs to be planned for and subsequently put in place. But also what needs to be done to support the people that will be most affected as a result of the removal.

“So, we will be working together with representatives of the states, we will have a plan that will start working on, putting the building blocks towards the eventual removal of the first subsidy.

“And if I may remind the forum that the budget for 2023 has provision for fuel subsidy only up to June 2023 and also the Petroleum Industry Act has a provision that requires that all petroleum products must be deregulated 18 months after the effective date of the PMS removal and that that period is also up to June 2020.”

More details to come later…