By Kamil Opeyemi
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.
She 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.
“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. But then we have two laws that have inadvertently made the provision that we should exit by June. So, if the committee’s work, which will include the representatives of the incoming administration, determined that the removal can be done by June, than the work plan will be designed to exit as at June,” she said.
“But if the determination is that the period is extended it 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 or amend the PIA. So, these are the reasons why we had to do this consultation, to get inputs from the government. 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.”
Ahmed added that NEC agreed to form an expanded committee that will look at the process for the removal, including determining the exact time and also the measures that need to be taken to provide support to the poor and the vulnerable and also the alternatives that will be put in place, including ensuring that there is sufficient supply of petroleum products in the country.
“So, we will be working together with representatives of the state, we will have a plan that we will start working on putting the building blocks towards the eventual removal of the fuel subsidy.
“The immediate committee is just comprising the ministry Finance, the NNPC, the downstream, upstream regulator, as well as the ministry of finance, budget, a national plan,” she added
Meanwhile, the 2023 budget made provision for subsidy only up to June this year.
In January 2022, the Federal Government proposed 18 months extension to the National Assembly for the implementation of the Petroleum Industry Act (PIA).
The current administration agreed to an extension of the statutory period for the implementation of the removal of subsidy on Premium Motor Spirit (PMS), in line with existing laws.