The Federal government has again suspended plans to remove fuel subsidy planned for June 2023 bowing to the pressure of the Nigeria Labour Congress ( NLC) in order to avoid another strike action.
Leadership of the NLC and the Organiser Private Sector (OPS) had rejected plans of the Federal Government to remove fuel subsidy.
The National Economic Council, said it has agreed that the timing of the removal of fuel subsidy should not be now.
The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, disclosed this to State House correspondents shortly after the valedictory Council meeting presided over by Vice President Yemi Osinbajo at the Council Chambers of the Presidential Villa, Abuja.
Ahmed said the Council agreed on the need for continued discussions on the issue adding that the FG, together with states and representatives of the incoming administration, require more preparatory work.
She said, “Council agreed that the timing of the removal of fuel subsidy should not be now. But that we should continue with all of the preparatory works that need to be done and that this preparatory work has to be done in consultation with the states and other key stakeholders including representatives of the in-coming 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 needs 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.”
Ahmed added that the FG will be working together with representatives of the states between now and June 2023.
FG Working Towards Fuel Subsidy Removal Without Disrupting Livelihoods – Aduda
“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 the period is also up to June 2020,” she said.
Meanwhile, organised Labour have described the Federal Government’s decision to suspend the removal of fuel subsidy as the “best option”.
Mr Benson Upah, Head of Information, Nigeria Labour Congress (NLC) said this to newsmen while reacting to the recent suspension of the subsidy removal by the Federal Government on Thursday in Abuja.
According to Upah, we are glad that they have begun to see the light and decided to do the right thing.
“Because the path they wanted to toe on the detriment of the ordinary Nigerians would have set the country on fire.
“There would have been instantaneous reaction. Of course, we would have been glad to coordinate those reactions.
“But happily, they have beginning to see the light. Our advice would be that they should take a lesson from the document we gave them on the so-called fuel subsidy removal.
The answer cannot be far from domestic production,’’ he said.
He said the decision would enable all the corruption building into the system to be minimised.
Upah, therefore, called on the Federal Government to fix the existing refineries or build new ones, instead of importing refined petroleum products.
Also, Mr Nuhu Toro, Secretary General, Trade Union Congress (TUC) on his part said that the Federal Government’s decision to suspend fuel subsidy removal was a good move.
“Though it’s coming late but the Federal government’s decision to suspend the move to remove fuel subsidy has alluded to the fact that such harsh economic policy ought to have been a product of social dialogue which was not done.
“We told Nigerians earlier on that the policy is ill-timed and is not acceptable. So it is good that the government has done a U-turn because the policy cannot be forced down our throat, ‘’he said.
Toro said that it was good that the government had to rethink its decision on the removal of fuel subsidy.
He also added that refurbishing the existing refineries and production of petroleum products in our country is in the best interest of the country because of the huge advantages.
“First, it would create jobs, make the petroleum products available for consumption and probably reduce the price of the products. It will also guarantee foreign direct investment and make Nigeria a better of place.
“We are confused that our refineries are not working and we have asked over time, why are the refineries not working.
“So there is a strong need for a deliberate effort by the incoming government to ensure that our refineries work.
“All the monies they claim goes to the process of deregulation can actually be utilised to make our refineries functiona,’’he said.
He added that the decision to revise that policy had further vindicated Nigerians as this was the right thing.
He however, charged the incoming government that the instrumentality of social dialogue should be leveraged upon on issues that affect the general project of Nigeria, adding that the voice and interest of Nigerians could be accommodated.
“Policies should not just be drafted overnight and pushed through people’s throat. Nigeria belongs to all of us.
“We are all critical stakeholders and must be part decision making and implementation body to ensuring that our country move forward,’’he said.
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