Experts react to NEC decision on fuel subsidy suspension
…There’s budgetary allocation for fuel subsidy removal — CPPE
…Incoming administration will address fuel subsidy issue as it affects over 200million Nigerians – Dr. Ehindero
By Seun Ibiyemi and Matthew Denis
The Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf reacting to NEC decision on fuel subsidy said petrol subsidy removal should be left for the incoming administration to handle as this should be the default position since the current government has announced a budgetary provision for fuel subsidy up till June 2023.
Dr. Yusuf while responding to the FG decision on subsidy removal suspension stressed that this is also the position of the Petroleum industry Act as amended.
“Rather than stir another round of controversy and confusion, the matter ought to be left for the new administration. The NEC announcement was really unnecessary.
“My expectation is that the new administration should have its strategy of managing the policy transition. This should not be preempted by the current administration.
“The National Economic Council should avoid making policy pronouncement that may create problems for the new administration. I also expect that some level of informal consultation should have commenced between the transition team of the incoming administration and key stakeholders on the matter.
“The APC had categorically stated that it would remove petrol subsidy on assumption of office. Although it had not unveiled its strategy of doing so.”
Incoming administration will address fuel subsidy issue as it affects over 200million Nigerians – Dr. Ehindero
The Executive Director of Nigerian Workforce Strategy and Enlightenment Centre (NIWOSEC), Dr. David Kayode Ehindero has disclosed that the incoming administration will address the issue of subsidy as it affects over 200 millions Nigerians.
Dr. Ehindero while speaking against the decision of the National Economic Council (NEC) to suspend the subsidy removal said, “I believe incoming administration will have to reverse some of this twilight decisions for a more strategic measure to cushion oil subsidy removal.”
He also described the 40 per cent salary increment offered the federal government as causing more confusion as it cannot bring respites to the masses when the fuel subsidy is removed.
Dr. Ehindero said, “This 40 per cent is a last minute Greek gift by the outgoing administration which is capable of creating more confusion in the polity.”
He stressed that the payment is sessional and will not have any effect in cushioning the effect of subsidy removal.
The Executive Director argued that “Increment for less than 200 thousand persons in the public service without standard negotiation by the Labour Union? This subsidy concern is for over 200million Nigerians.”
Earlier, The National Economic Council (NEC) on Thursday suspended the planned removal of subsidy on petroleum products by the end of President Muhammadu Buhari’s administration.
The Minister of Finance, Budget, and National Planning, Mrs. Zainab Ahmed disclosed this while briefing State House correspondents at the end of the NEC meeting presided over by Vice President Yemi Osinbajo at the Presidential Villa, Abuja.
According to the Minister, the NEC concluded in its meeting that it is not a favourable time for the action.
Mrs Ahmed stated that the Council deliberated on the matter and resolved that it cannot be removed for now, but it equally agreed on the need to continue the discussion on the matter and the necessary preparatory work in conjunction with states and representatives of the incoming administration.
“Council agreed that the fuel subsidy must be removed earlier rather than later because it is not sustainable. We cannot afford it anymore. But we have to do it in such a way that the impact of the subsidy is as much as possible, mitigated on the lives of ordinary Nigerians.
“So, this will require looking at alternatives to the fuel subsidy that need to be planned for and subsequently put in place. But also what needs to be done to support the people that will be most affected as a result of the removal.”
She added that the FG will be working together with representatives of the
“We have a plan that we will start working on, putting the building blocks towards the eventual removal of the first subsidy.
“And if I may remind this forum that the budget for 2023 has a provision for fuel subsidy only up to June 2023 and also the Petroleum Industry Act has a provision that requires that all petroleum products must be deregulated 18 months after the effective date of the PMS removal and that that period is also up to June 2020,” the minister explained.
