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Subsidy removal: FG to seek World Bank funds, provide palliatives for workers

In response to the removal of fuel subsidy, the National Economic Council (NEC) has taken steps to provide relief measures for workers and vulnerable groups in Nigeria to mitigate the impact.

Following its inaugural NEC meeting on Thursday, presided over by Vice President Kashim Shettima, the council announced the formation of a committee tasked with developing the framework for organizing and distributing the relief measures within a two-week period.

The committee consists of governors representing various geopolitical zones: Kebbi for North Central, Kaduna for Northwest, Bauchi for Northeast, Cross River for South-South, Anambra for Southeast, and Oyo for Southwest.

During a briefing with State House correspondents, Governor Bala Mohammed of Bauchi State, accompanied by four of his colleagues, revealed that the council also explored the possibility of securing funds from the World Bank and partners in London to implement a Compressed Natural Gas (CNG) program for vehicles in the country.

This initiative is intended to alleviate the impact of fuel subsidy removal. The council further discussed recommendations put forth by organized labour, including a request for a N702.9 billion consequential adjustment on allowances and a monthly allocation of at least N25 billion to cushion the effects of subsidy removal.

Governor Mohammed emphasized that the NEC engaged in extensive deliberations and made significant decisions concerning the removal of petroleum subsidy and its broader economic implications. He highlighted the receipt of recommendations from the National Salaries, Income, and Wages Commission to address the situation.

Furthermore, Governor Mohammed affirmed that the inputs provided by the committee on palliatives, previously headed by former Vice President Yemi Osinbajo, would not be disregarded but rather integrated into the ongoing process.

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