The federal government Monday halted its proposed plan of subsidy removal from pump price of Premium Motor Spirit (PMS), popularly known as fuel in July 2022.
Postponement of the plan as declared by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed and President of the Senate, Ahmad Lawan, at an emergency stakeholders’ meeting held at the National Assembly, will affect full implementation of the Petroleum Industry Act (PIA).
Speaking to journalists at the meeting convened by the Senate President, the finance Minister said the federal government initially had the plans to remove subsidy on petroleum products from July 2022, which made it to make adequate provision in the 2022 national budget for subsidy payment till June only.
She said, “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 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.”
Also confirming postponement of the planned action, the Senate President said, “Recall that last Tuesday I visited the President on the possible removal of subsidy on petroleum products in the country, and after my meeting with the President I addressed the press in the Villa.
“Admittedly the burden is huge, and there is need at one point to do away with subsidy but the President genuinely feel for Nigerians particularly the most vulnerable.
“Because of this feeling by the President and most of us in this administration believe that the issue of removal of subsidy should be handled with utmost care especially that sufficient planning needs to be done.
“Significant arrangement for absorbing the shock that will come with the removal should be done and the timing is such that the impacts and consequences will not add to hardships.”
He however added that in line with implementation of PIA, subsidy will eventually be removed but not too soon as earlier projected for July this year.
He therefore urged the organised labour unions in the country to shelve their proposed nationalwife protests as it was no longer necessary.
The meeting which was still on as at the time of filling this report, had in attendance the Minister of State for Petroleum Resources, Timipre Sylva and the Group Managing Director of the NNPC Limited, Mele Kyari, among others.
