The Federal Government says it is proposing an 18 months extension of the implementation of the fuel subsidy removal policy.
The disclosure was made on Tuesday by the Minister of State for Petroleum Resources, Timipre Sylva, during a special briefing of State House correspondents on fuel subsidy by the Presidential Communications Team at the Presidential Villa, Abuja.
Sylva revealed that government has concluded plans to approach the National Assembly to amend the Petroleum Industry Act (PIA).
What the Minister of State for Petroleum is saying
Sylva said the extension will give all stakeholders time to ensure that the implementation is carried out in a manner that ensures all necessary modalities are in place to cushion the effect of the fuel subsidy removal, in line with prevailing economic realities.
The Minister said, “We are proposing an 18-month extension but what the National Assembly is going to approve is up to them,” the minister said. “We would approve an 18-month extension and then it is up to the National Assembly to look at it and pass the amendment as they see it.
“With assent by the President on August 16, 2021, the PMS subsidy removal was therefore expected to take place effective February 16, 2022. However, following extensive consultations with all key stakeholders within and outside the government, it has been agreed that the implementation period for the removal of the subsidy should be extended.
“This extension will give all the stakeholders time to ensure that the implementation is carried out in a manner that ensures all necessary modalities are in place to cushion the effect of the PMS subsidy removal, in line with prevailing economic realities.
“The President assures that his administration will continue to put in place all necessary measures to protect the livelihoods of all Nigerians, especially the most vulnerable.”
Sylva, who chairs the PIA Implementation Committee, stressed that the decision of the executive arm of government to seek an amendment of the law was not politically motivated, but born out of the necessity to stop the potential suffering of the vulnerable in the society.
The minister believes other measures such as the Dangote refinery, the Port Harcourt refinery, and other modular refineries will have significantly come on stream by the end of the year.
He stated that the new PIA provides for unrestricted market pricing for PMS from the effective date, adding that the legislation also envisaged the potential for supply disruption with its resultant effect on the economy.
He said, “Consequently, it provides for a window of six months from the effective date for the government to request the services of NNPC Limited as the supplier of last resort.
“This is to forestall supply disruptions and guide market readiness preparatory to migration to the deregulated pricing regime.’’
What you should know
- Recall that yesterday, the Federal Government announced the postponement of the take-off of the fuel subsidy removal policy till further notice.
- The Minister of Finance, Budget and National Planning, Zainab Ahmed, attributed the postponement of the implementation of the policy to bad timing due to heightened inflation, need for rollout of existing refineries and new ones to reduce volume of products imported into the country, further consultations with stakeholders, among others.
- Meanwhile, the Nigerian Labour Congress (NLC) has insisted on its planned nationwide protest on Thursday, January 27, 2022, despite the announcement of the government suspending the implementation of the policy.
- The fuel subsidy removal debate was once again brought to the fore when the Senate President, Ahmed Lawan, said that President Muhammadu Buhari assured him that he had not directed anyone to remove fuel subsidy.
