- The National Economic Council (NEC) under the Tinubu administration is considering salaries and natural gas alternatives as palliatives in response to the removal of fuel subsidies.
- A committee will be established by the NEC to devise a distribution process for the palliatives, with modalities to be finalized within two weeks.
- Governor Bala Mohammed of Bauchi State stated that the NEC had extensive discussions and made significant decisions regarding the fuel subsidy removal and its impact on the economy, incorporating recommendations from the previous NEC led by Vice President Osinbajo.
The Tinubu administration’s National Economic Council (NEC) has announced that salaries and natural gas alternatives are being considered as palliatives in response to the removal of fuel subsidy.
The council revealed that a committee will be established to devise a distribution process for these palliatives, as stated in a press briefing following its inaugural meeting.
The NEC aims to finalize the modalities for the committee’s operation within a two-week timeframe. President Bola Ahmed Tinubu established the council on Thursday, June 15, with Vice President Kashim Shettima leading the initiative.
Following the NEC meeting, Governor Bala Mohammed of Bauchi State addressed the press, highlighting the council’s comprehensive discussions and decisions regarding the fuel subsidy removal and its broader impact on the economy. He also emphasized the integration of recommendations provided during the previous NEC led by Vice President Osinbajo into the ongoing process.
Deliberations on salary increment
According to Governor Mohammed, the Council deliberated on recommendations by the organized labor for N702.9 billion consequential adjustment on allowances as well as no less than N25 billion naira per month, which they requested to cushion the effects of the subsidy removal. He also said NEC considered recommendations received from the National Salaries, Income, and Wages Commission.
Mr. Joe Ajaero, the President of the Nigeria Labour Congress (NLC) recently proposed a wage award, which could be implemented immediately without waiting for the statutory period for the minimum wage law or for it to expire. According to him, the wage award, which is separate from the minimum wage, is intended to provide relief.
Meanwhile, the wage award proposal does not negate the upcoming review of the minimum wage, which is scheduled for 2024.
Plan for natural gas vehicles
Governor Bala Mohammed said the council discussed the possibility of obtaining funds from the World Bank and London partners to implement a Compressed Natural Gas (CNG) programme for vehicles in the country as part of measures to cushion the impact of fuel subsidy removal.
Recall that the Group CEO of the Nigerian National Petroleum Company Limited, Mele Kyari, already revealed plans by the new administration to offer alternatives to petrol, including compressed natural gas (CNG) and liquefied petroleum gas (LPG) for vehicles.
What you should know
Members of the committee include the Governor of Kebbi, the Governor of Benue representing the North Central; the Governor of Kaduna representing the Northwest; the Governor of Bauchi, representing the Northeast; the Governor of Cross River, South-South; Anambra representing the Southeast and Oyo State representing the Southwest.
