. As NLC, TUC commend ‘suspension’
Amid reports that the National Economic Council (NEC), yesterday, agreed that the removal of fuel subsidy be suspended for now, the Minister of Finance, Budget and National Planning, Mrs. Zaniab Ahmed, insists the process is still on-going.
She explained that rather than suspension, the Federal Government merely expanded the subsidy removal committee to include teams from the incoming administration and the state governors.
The Minister’s spokesperson, Yunusa Abdullahi, in a statement shortly after, said Ahmed made the clarification in Abuja after the NEC meeting, chaired by the Vice President, Yemi Osinbajo.
She was quoted as saying that NEC deliberated on the issue extensively and came to the conclusion that the subsidy must be removed as it is not sustainable, but there is a need for further consultations, especially the need to involve members of the incoming administration and representatives of the state governments.
Ahmed said: “We agreed to form an expanded committee that will be looking at the process for the removal of the subsidy, including determining the exact time as well as the measures that need to be taken to provide support to the poor and the vulnerable.
“There is also the need to agree to alternative measures that will be put in place to ensure that there is sufficient supply of petroleum products in the country.”
However, the Nigeria Labour Congress (NLC), and the Trade Union Congress (TUC), believing the suspension to be true, described the decision as the “best option” for the country.
The Organized Private Sector (OPS) and labour have been the most critical of the Federal Government’s fresh $800 million loan from the World Bank to cushion the effects of the subsidy removal.
We agreed to form an expanded committee that will be looking at the process for the removal of the subsidy, including determining the exact time as well as the measures that need to be taken to provide support to the poor and the vulnerable.
Expanded committee
But clarifying her comments to journalists after the NEC meeting, Ahmed noted that the Subsidy Removal Committee currently comprises the Ministry of Finance, Budget and National Planning, Ministry of Petroleum Resources, Nigerian National Petroleum Company (NNPC) Limited, the downstream and upstream regulators, Central Bank of Nigeria (CBN), and the Chief Economic Adviser to the President.
She also said the 2023 Fiscal Framework and Appropriation Act as well as the Petroleum Industry Act (PIA) have made the provision that the government should exit fuel subsidy by June 2023.
As a result, she said the committee is to work out a road map for the removal of the subsidy. No change in the overall policy direction regarding the petrol subsidy is envisaged by June 2023.
Reports quoted Amed as saying: “So there’ll be an expanded committee so that it is not just a few people’s thoughts that will guide the process so that there is sufficient consultation taking inputs from key stakeholders on the measures that need to be taken.
“What I said is that it is not going to be removed now, which means it will not be removed before the transition is completed.”
She continued, “So if the committee’s work, which will include the representatives of the incoming administration, determines that the removal can be done by June, the work plan will be designed to exit in June.
“But if the determination is that the period needs to be extended, that will mean that as a country we will have to revisit the Appropriation Act, for example, because the 2023 budget only made provision up to June. So, if we’re extending beyond June, it means we have to revisit the Appropriation Act and do a supplementary or amend the bill and also the PIA.
“These are the reasons why we had to do this consultation with NEC to get input from the governors. They’re going to provide us their representatives to work together with us to have a defined process that will take us towards the removal.
“But one thing that is clear is everybody agreed that the subsidy should be removed very quickly, because the cost is only not efficient, but is also not sustainable. And that when the time comes for removal, the removal will be done once and for all.”
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.
Labour supports suspension
Expressing support for the “suspension”, NLC’s Head of Information, Benson Upah, said the government did the right thing.
“The path they wanted to tow at the detriment of the ordinary Nigerians would have set the country on fire.
“There would have been an instantaneous reaction. Of course, we would have been glad to coordinate those reactions.
“But happily, they are 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.
Upah called on the Government to fix the existing refineries or build new ones, instead of importing refined petroleum products.
Also, TUC’s Secretary General, Nuhu Toro, said: “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 added that refurbishing the existing refineries and production of petroleum products in the country is in the best interest of the people 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 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.”
