EKO HOT BLOG reports that the National Economic Council (NEC) has suspended the planned removal of subsidies on petroleum products by the end of President Muhammadu Buhari’s administration.
The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, made the announcement while briefing State House correspondents at the end of the NEC meeting, which was presided over by Vice President Yemi Osinbajo at the Presidential Villa in Abuja.
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According to the minister, the removal of the subsidy will likely take effect in June because the Petroleum Industry Act (PIA) and the 2023 budget have provided for the subsidy until June. Any delay in the implementation of the removal of the subsidy may require an amendment of the PIA and the budget provision.
She further explained that there was no deadline given for the subsidy removal and that the incoming administration would take a decision on when it would be possible to do that.
The decision to suspend the removal of subsidies on petroleum products is expected to bring relief to millions of Nigerians who rely heavily on fuel for their daily activities.
The removal of subsidies on petroleum products has been a contentious issue in Nigeria for many years, with successive governments grappling with the best way to manage the country’s petroleum sector.
The suspension of the subsidy removal will also come as a relief to the organized labour unions in Nigeria, who have been at the forefront of the campaign against the removal of subsidies.
The unions had threatened to embark on a nationwide strike if the government went ahead with the planned removal of subsidies.
The NEC is made up of 36 state governors, the governor of the Central Bank of Nigeria, and other top officials from the federal government. The council is responsible for advising the federal government on economic policy and other related matters.
In summary, the suspension of the removal of subsidies on petroleum products by the NEC is expected to provide relief to Nigerians who have been worried about the impact of the removal of subsidies on their daily lives.
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The move is also expected to provide some stability to the country’s petroleum sector, which has been fraught with challenges over the years.
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