Citizens win as FG suspends fuel subsidy removal

Nigerian citizens won the battle against the Federal Government over the plan to remove the fuel subsidy.

This was confirmed as the Minister of Finance, Budget and National Planning, Zainab Ahmed; and the Minister of State Petroleum Resources, Sylva; informed the National Assembly that the Federal Government had suspended the plan to remove subsidy on petroleum products especially Premium Motor Spirit (petrol).

Ahmed, Sylva and the Group Managing Director of NNPC Limited, Mele Kyari, among others, were invited to the National Assembly by the Senate president, Ahmad Lawan, over the subsidy removal.

While speaking at the meeting, Ahmed explained that the Federal Government had planned to commence the subsidy removal by July 2022.

The minister said, “Let me start by stating the fact that we did make a provision in the 2022 budget for fuel subsidy from January to June, and that suggests that from July there would be no subsidy. This provision was made sequel to the approval of the Petroleum Industry Act that all products would be deregulated.

“Subsequent to the passage of the Act, we went back and amended the fiscal framework and submitted it to the National Assembly to incorporate this money. But after the budget was passed and we have had consultation with a number of stakeholders, it became clear that the timing is problematic; that practically, there is still heightened inflation, hence the removal of subsidy will rather worsen the situation, thereby imposing more difficulties on the citizens and the President clearly does not want to do that.”

She said efforts were on to boost the country’s oil refining capacity which includes the inauguration of the 650,000bpd refinery (owned by Dangote Group) and the rehabilitation of the four national refineries that have a combined refining capacity of 450,000barrels per day and also the rehabilitation.

Ahmed added that a supplementary budget may be sent to the legislative to provide funding for subsidy beyond June.

“As we are discussing, there is a possibility of amending the budget; we need to come back to the National assembly by way of amendment to make additional provision for fuel subsidy from July 2022 going forward.

Also Read: Nigerian Government Restores Twitter Operation After Six Months

“We are exploring ways of going through various discussions with stakeholders as well as the civil society and labour union, ways by which we can address this removal in a manner that is graduated that will have minimal impact on the citizens. So, we will come back to the citizens,” she said.

In his remark, Sylva stated that the PIA cannot be implemented within six months. He, therefore, proposed more amendments to the Act as well as a supplementary budget to cover subsidy payments beyond June.

“As far as I am concerned, this, at this point, is a legislative duty.  The law has been passed, we are all aware, but there is no law that is cast in stone. It is clear to everyone that, at this point in operationalising the law, is not possible within the six-month framework that has been provided for in the law.

“And if that timeframe provided for in the law is feasible, which has come to us as a result of operationalizing the law, then, it is also a legislative responsibility now to see what can be done in extending that timeframe for it to be in the purview of the law,” Sylva said.

Senate President Ahmad Lawan said the President was moved by the need to protect Nigerians from further economic hardship.

He, therefore, implored on the organised labour to suspend plans to embark on protests.