The Federal government last Monday announced a total reversal of the planned fuel subsidy describing the timing for its action as “problematic” and will further worsen the suffering of citizens.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, who disclosed this during a meeting with the Senate president, Ahmad Lawan, the Minister of State for Petroleum Resources, Timipre Sylva, among many others, said the government is counting on the upcoming Dangote refinery to increase the country’s refining capacity.
The Minister of Finance, Ahmed Zainab, also informed that the Federal Government made provisions for subsidy in the 2022 budget from January to June this year as the planned suspension of petroleum subsidy will take effect from July 2022.
According to her, the federal government decided to suspend its plan to go ahead with the removal of subsidy on petroleum products in July, particularly against the backdrop of outcomes from ongoing consultations.
She further disclosed that efforts are also underway by the Executive arm of government to forward a request to the National Assembly to make additional provision for fuel subsidy from July this year till a time deemed appropriate for its eventual removal.
In her words, “This provision was made sequel to the passage of the Petroleum Industry Act, PIA, that has made provision that all products will be deregulated.“Subsequent to the passage of the Act, we went back and amended the Fiscal Framework that was submitted to the National Assembly to incorporate this demand, but after the budget was passed, we have had consultations with a number of stakeholders.
“What we have to do now is to continue with the discussions we are making, in terms of putting in place a number of measures, one of which is the deployment of an alternative to Premium Motor Spirit, PMS, and also the roll-out of enhanced refining capacity in the country, including the 650,000 barrels per day Dangote Refinery and also the rehabilitation of the four national refineries that have a combined capacity of 450,000 barrels per day
“The increased refining capacity in the country means we will need to import less products. But also as we are discussing right now within the Executive the possibility of amending the budget, we may need to come back to the National Assembly by way of amendment to make additional provision for fuel subsidy from July, 2022, going forward, or to whatever period that is agreed as the right time.
The Senate President, Ahmad Lawan, in his response faulted the timing of the proposed Fuel subsidy suspension and urged the Nigerian Labour Congress, NLC, and the Trade Union Congress, TUC, to abort the planned protests against the Federal Government’s proposed removal of fuel subsidy, saying the move was “totally unnecessary”.
However, the reversal decision equally sparked off controversies and criticisms at various quarters with the Nigeria Labour Congress, NLC, insisting that it will not be distracted by the report that the Federal Government has shelved its plans to remove subsidy on petrol and increase the pump price of petrol while confirming the nationwide protest over the proposed fuel subsidy removal would go ahead as planned, saying it was not strike but an avenue to inform workers and masses its view on petrol subsidy and deregulation of the downstream sector of the petroleum industry.
However, the leaders of Nigeria Labour Congress, NLC, have written a six-page petition to the 36 state governors, informing them of Thursday January 27, planned nationwide protest against government’s planned removal of subsidy on petrol and further increase in the pump price of petrol.
On his part, the President of the Nigerian Bar Association, Olumide Akpata, warned that it would be suicidal for the Federal Government to withdraw fuel subsidy now.
He, therefore, said government might have suspended its plan to remove subsidy on petroleum products for political reasons.
According to Akpata, the government must have been advised against the move towards the 2023 general elections.
While we salute the President Muhammadu Buhari led government for the reversal we also urge the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) to consider a more peaceful approach towards compelling the government to live up to the promises.
