The National Economic Council (NEC) has moved to provide palliatives for workers and vulnerable groups in the country following the removal of petroleum subsidy, which has heightened the cost of living.
Arising from its maiden meeting under the present dispensation, which was presided over by the Chairman, Vice President Kashim Shettima at the Presidential Villa, Abuja on Thursday, it announced the setting up of a committee to work out, within two weeks, the modalities for organizing and distributing the palliatives.
Disclosing these to correspondents after the meeting, the Governor of Bauchi State, Bala Mohammed, who was joined by four of his colleagues, said the council also discussed the possibility of obtaining funds from the World Bank and London partners to implement the programme of Compressed Natural Gas (CNG) for vehicles in the country as part of measures to bring down the price of fuel.
He said the council deliberated on other recommendations including the one by the organized labour for N702 billion consequential adjustment on allowances as well as the about N23 to N25 billion monthly they requested to cushion the effects of the subsidy removal.
While noting that NEC took very far-reaching decisions and deliberations on the issue of the removal of petroleum PMS subsidy and its general impact on the economy, Mohammed said: “Specifically on the issue of national salaries, income and wages commission, NEC had received recommendations on the various ways and means that the country can use whatever increases that we have in the revenue to mitigate the impact that is going to make on the lives of our workers and all those people involved.
“And so, they recommended and they gave us a scenario recommending that there should be a consequential adjustment, estimated at N702,919.8 billion as part of the allowances that should be given as petroleum allowance to all workers and as well as a 23 or 25 billion monthly offer to cushion the effect on workers and others suggest that will go a long way in making sure that there is review of our salaries and wages.”
He revealed that the Council looked at all the issues including “the challenges and problems holistically and set up a small committee of council to review and come up with a term of reference to organized areas specifically where this palliatives can come and how it will be dispensed to alleviate the problem of workers and other vulnerable groups.
“Members of the committee is composed of Governor Kebbi as Chairman; Anambra representing the South East geopolitical zone; Governor Benue, North Central, Governor of Kaduna, Northwest; my humble self, Bauchi, representing the northeast; Governor Cross River, South-South and Oyo state, southwest.
“Other relevant agencies were also included. They comprised a budget office, representative of the CBN, representative of the Office of the Attorney General of the Federation, representative of NNPC, representative of TUC and NLC and of course, Rukayat el-Rufai so that we can sit within two weeks to come up with recommendation to NEC for a wholistic decision that will be taken immediately to alleviate the problem that may be encountered by the removal of the subsidy.”
The Bauchi governor said the input of the committee on palliatives earlier set up and headed by former Vice President Yemi Osinbajo, would not be discarded but integrated into the ongoing process.
In his contribution, Governor Dikko Radda of Katsina State affirmed that the government has approached the World Bank for more funds for the NG-Cares programme to mitigate the effect of subsidy removal.
He explained: “As you are aware, the NG-Cares Programme is a programme that started in 2021 running up to 2024. And then is to provide some emergency on palliatives, social needs on so many issues ranging from small farmers holders. MSMEs and other interventions. It’s $750 million from the World Bank. And it commenced a long time ago.
“And some of the recommendations that were made include the state Cares platforms having strong capacity to handle the implementation of palliative to the new and existing poor and vulnerable individuals, households and farmers, local economy of operators in the country.
“Additional funding can be sourced from the federal government, World Bank, Development partners as well as Nigerian private sector.
“In specific, the World Bank can be approached for additional financing on the NG-Cares programme. Discussion can start as soon as possible.
“So these are the recommendations that were made. And the Economic Council will pursue these recommendations for the benefit of the Nigerian, vulnerable and the poor.”
Also speaking, Governor Alex Otti of Abia State said NEC looked at the issue of providing legislative support to local automotive manufacturers following a presentation made to it by the National Automotive Design and Development Council.
While noting that the impact of subsidy removal has increased prices, he said the presentation dwelt on ways to solve the problem and reduce shock.
He stated that some of the local vehicle manufacturers have already gone into the production of CNG and electric automobiles, which can reduce the petrol pressure, noting the need to support them through legislation.
Otti said: “At the moment, about 50,000 jobs have been created by this simple action of either assembling vehicles in Nigeria or producing them in Nigeria.
“A great feat is that some of these companies have gone into the manufacturing or assembly of electric vehicles and vehicles powered by CNG – compressed natural gas.
“The impact of this is that the pressure on the price of petroleum products, particularly PMS, will be reduced the more we use electric vehicles and CNG powered vehicles.
“Some of the decisions that we were taken include that legislative support will need to be given to these companies that are doing great things in Nigeria.
“It is important to underscore the point that former President had made a commitment that by 2060 that Nigeria would join countries that will eliminate fossil fuel powered vehicles and move to electric vehicles in pursuit of the net zero emission that some of the countries in Europe, America and Asia have signed on to.
“So, if that must happen, then we need to ramp up the production of electric vehicles and CNG vehicles.
“It is estimated that if we give legislative support to these companies that about a million jobs from the 50,000 jobs that exist in that industry would be created.
“It was also suggested that the funding that is required by most of these vehicle manufacturers and assemblers shall be made available to them so that we begin reduce the dependence on PMS and other fossil fuel powered vehicles.”
NEC also spoke of the need to alleviate the suffering caused by the 2022 flood disaster in the country through the timely release of funds as recommended by various committees.
Governor Yahaya Bello of Kogi State, who addressed this issue also said that NEC regretted the delay by many of the states affected by the disaster to forward their submissions to the Secretariat.
Noting the position of NEC, he said: “The plight of victims of the unfortunate flood disaster across affected states of the federation could be alleviated if the much needed intervention from the federal government materialized without further delay.
“There is therefore the need to expedite release of funds to affected states as recommended by designated committees constituted by the federal government to that effect.
“This will go a long way in addressing the needs of the victims as well as offset debts incurred by some states to assist the victim.”
He said that given the threat of flood this year, NEC resolved that all states should make a comprehensive submission by next week.
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