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Tag: Fuel Subsidy

  • Fuel subsidy: Lawan urges Buhari to transmit bill to amend PIA

    Fuel subsidy: Lawan urges Buhari to transmit bill to amend PIA

    Senate President Ahmad Lawan on Wednesday urged President Muhammadu Buhari to transmit a bill to the National Assembly to amend the Petroleum Industry Act (PIA).

    Lawan made the call in his remarks before referring the President’s request for the amendment of the 2022 Appropriation Act to the Committee on Appropriation after the bill scaled second reading.

    Lawan said a request seeking for an amendment to the PIA would enable the National Assembly extend the subsidy regime in the Petroleum Industry Act.

    This,he said, will be in line with the President’s request for an additional N2.557 trillion naira to cover fuel subsidy in the 2022 budget from July this year.

    The present subsidy regime is expected to elapse in June 2022, in accordance with the provisions of the Petroleum Industry Act.

    Buhari, in a letter to the National Assembly dated Feb 10 requested for an additional provision for N2.557 trillion naira to fund petrol subsidy in the 2022 Budget Framework from July this year.

    Lawan, therefore, mandated the relevant Oil and Gas Committees of the National Assembly to engage the Executive on a bill to amend the PIA to align with the President’s request.

    “This is an opportunity for me to speak to the issue of the Executive sending a request for the amendment of the Petroleum Industry Act to extend the provision of the fuel subsidy which is also requested in the amendment of the 2022 Appropriation Act.

    “The Act itself says something else, that there will be no subsidy. If we approve for subsidy in the 2022 Appropriation Act Amendment Bill to us, then it means we have to extend the period in which government will provide subsidy up to the point this subsidy we approve (N2.557 trillion) would last.

    “So, there is need to come up with the request for amendment.

    “Our Gas and Oil related Committees should work with the Executive side of government to get that sorted as soon as possible, so that what we do is appropriate, and is lawful and legal.”

  • BREAKING: Buhari requests additional N2.557 trillion to fund subsidy in 2022

    BREAKING: Buhari requests additional N2.557 trillion to fund subsidy in 2022

    President Muhammadu Buhari has requested that an additional provision for N2.557 trillion naira be appropriated by the National Assembly (NASS) to fund petrol subsidy in the 2022 Budget Framework.

    TheNewsGuru.com (TNG) reports this was contained in a letter dated 10 February 2022, which President Buhari sent to the NASS that was read by the Senate President, Ahmad Lawan on the floor of the Senate during plenary on Tuesday.

    Buhari, who sent the letter to the NASS to amend the 2022 Appropriation Act passed by the National Assembly in December, 2021, requested the additional provision for N2.557 trillion to provide fully for the PMS subsidy.

    Recall the federal government had made plans to remove fuel subsidy but in January suspended the plans, following uproar by Nigerians.

    Announcing suspension of the fuel subsidy removal, Finance Minister, Zainab Ahmed said at the time that only N443 billion was available to fund subsidy in 2022.

    She also said the Nigerian National Petroleum Company (NNPC) Limited requested a total of N3 trillion from the federal government to fund fuel subsidy in 2022.

    With the request Buhari sent to the NASS, if and when approved, the federal government will now have about N3 trillion to fund subsidy for 2022.

    Meanwhile, the President in the letter forwarded to NASS said it was imperative to remove all capital projects that were replicated in the 2022 Appropriation Act.

    He disclosed that 139 out of the 254 projects in the budget totaling N13.24 billion had been identified for deletion.

    Buhari, therefore, requested the National Assembly to amend the Appropriation Act to provide for Capital Expenditures in the sum of N106,161,499,052 billion naira; and N43,870,592,044 billion naira for Recurrent Expenditures.

    He underscored the need to reinstate four capital projects totaling N1.4 billion in the Executive proposal for the Federal Ministry of Water Resources; and N22.0 billion cut from the provision for the Sinking Fund to retire mature loans needed to meet government’s obligations under already Issued Bonds.

    The full text of the letter entitled, “SUBMISSION OF THE 2022 APPROPRIATION AMENDMENT PROPOSAL”, reads:

    “As I indicated at the signing of the 2022 Appropriation Act, I forward herewith the Proposals for amendment of the 2022 Appropriation Act (as detailed in Schedules I-V), for the kind consideration and approval by the Senate.

    “Let me seize this opportunity to once again express my deep gratitude to the leadership and members of the Senate for the expeditious consideration and passage of the 2022 Appropriation Bill as well as the enabling 2021 Finance Bill.

    “It has become necessary to present this amendment proposal considering the impacts of the recent suspension of the Petroleum Motor Spirit (PMS) subsidy removal and the adverse implications that some changes made by the National Assembly in the 2022 Appropriation Act could have for the successful implementation of the budget.

    “It is important to restore the provisions made for various key capital projects in the 2022 Executive Proposal (see details in Schedule l) that were cut by the National Assembly. This is to ensure that critical ongoing projects that are cardinal to this administration, and those nearing completion, do not suffer a setback due to reduced funding.

    “It is equally important to reinstate the N25.81 billion cut from the provision for the Power Sector Reform Programme in order to meet the Federal Government’s commitment under the financing plan agreed with the World Bank.

    “In addition, it is necessary to reinstate the four (4) capital projects totaling N1.42 billion in the Executive Proposal for the Federal Ministry of Water Resources that were removed in the 2022 Appropriation Act.

    “Furthermore, there is critical and urgent need to restore the N3 billion cut from the provision made for payment of mostly long outstanding Local Contractors’ Debts and Other Liabilities as part of our strategy to reflate the economy and spur growth (see Schedule I).

    “You will agree with me that the inclusion of National Assembly’s expenditures in the Executive Budget negates the principles of separation of Powers and financial autonomy of the Legislature. It is therefore necessary to transfer the National Assembly’s expenditures totaling N16.59 billion in the Service Wide Vote to National Assembly Statutory Transfer provision (see Schedule l).

    “It is also imperative to reinstate the N22.0 billion cut from the provision for Sinking Fund to Retire Mature Loans to ensure that government can meet its obligations under already issued bonds as and when they mature.

    “The cuts made from provisions for the recurrent spending of Nigeria’s Foreign Missions, which are already constrained, are capable of causing serious embarrassment to the country as they mostly relate to office and residential rentals.

    “Similarly, the reductions in provisions for allowances payable to personnel of the Nigerian Navy and Police Formations and Commands could create serious issues for government. It is therefore imperative that these provisions be restored as proposed (see Schedule II).

    “It is also absolutely necessary to remove all capital project that are replicated in the 2022 Appropriation Act; 139 out of the 254 such projects totaling N13.24 billion have been identified to be deleted from the budget.

    “Some significant and non-mandate projects were introduced in the budgets of the Ministry of Transportation, Office of the Secretary to the Government of the Federation and Office of the Head of Civil Service of the Federation (see Schedule III). There are several other projects that have been included by the National Assembly in the budgets of agencies that are outside their mandate areas. The Ministry of Finance, Budget and National Planning has been directed to work with your relevant Committees to comprehensively identify and realign all such misplaced projects.

    “It is also necessary to restore the titles / descriptions of 32 projects in the Appropriation Act to the titles contained in the Executive Proposal for the Ministry of Water Resources (see Schedule IV) in furtherance of our efforts to complete and put to use critical agenda projects.

    “The Appropriation Amendment request is for a total sum of N106,161,499,052 (One hundred and six billion, one hundred and sixty-one million, four hundred and ninety-nine thousand, and fifty-two Naira only) for Capital Expenditures and N43,870,592,044 (Forty-three billion, eight hundred and seventy million, five hundred and ninety-two thousand, and forty-four Naira only) for Recurrent Expenditures.

    “I therefore request the National Assembly to make the above amendments without increasing the budget deficit. I urge you to roll back some of the N887.99 billion of projects earlier inserted in the budget by the National Assembly to accommodate these amendments.

    “However, following the suspension of the PMS subsidy removal, the 2022 Budget Framework has been revised to fully provide for PMS subsidy (see Schedule V). An additional provision of N2.557 trillion will be required to fund the petrol subsidy in 2022.

    “Consequently, the Federation Account (Main Pool) revenue for the three tiers of government is projected to decline by N2.00 trillion, while FGN’s share from the Account is projected to reduce by N1.05 trillion. Therefore, the amount available to fund the FGN Budget is projected to decline by N969.09 billion.

    “Aggregate expenditure is projected to increase by N45.85 billion, due to additional domestic debt service provision of N102.5 billion net of the reductions in Statutory Transfers by N56.67 billion, as follows: NDDC, by N12.61 billion from N102.78 billion to N90.18 billion; NEDC, by N5.90 bilion from N48.08 billion to N42.18 billion; UBEC, by N19.08 billion from N112.29 billion to N93.21 billion; Basic Health Care Fund, byN 9.54 billion from N56.14 billion to N46.60 billion; and NASENI, by N9.54 billion from N56.14 billion to N46.60 billion.

    “Total budget deficit is projected to increase by N1.01 trillion to N7.40 trillion, representing 4.01% of GDP. The incremental deficit will be financed by new borrowings from the domestic market.

    “Equally, it is imperative that Clause 10 of the 2022 Appropriation Act which stipulates that the Economic and Financial Crimes Commission (EFCC) and the Nigerian Financial Intelligence Unit (NFIU) are authorized to charge and defray from all money standing in credit to the units as revenues, penalties or sanctions at 10% for technical setup and operational cost at the units in this financial year be repealed.

    “This clause is in conflict with the Act establishing these Agencies, as well as some other laws and financial regulations of the government. These are neither Revenue Generating Agencies nor Regulatory Bodies that generate revenue or charge penalty fees. They are fully funded (Personnel, Overhead and Capital) by Government through Budgetary provisions.

    “The Fiscal Responsibility Act 2007, as well as the Finance Act 2021, require these Agencies to remit fully any recovered funds to the Consolidated Revenue Fund (CRF). This clause may lay a dangerous precedence, and spark clamours for similar treatment by other anti-corruption agencies.

    “Also, the Clause 11 which stipulates that “Notwithstanding the provisions of any other law in force, Nigerian Embassies and Missions are authorised to expend funds allocated to them under the Capital components without having to seek approval of the Ministry of Foreign Affairs” should likewise be repealed. It too is inconsistent with extant Financial Regulations and the Public Procurement Act, which set thresholds for approving officers and Parastatal / Ministerial Tenders Boards for awards of Contracts for the procurement of goods and Services. This also amounts to an intrusion of the Legislature into what is an executive function.

    “Given the urgency of the request for amendments, I I seek the cooperation of the National Assembly for expeditious legislative action on the 2022 Appropriation Amendment Proposal in order to sustain the gains of an early passage of the budget.

    “Please accept, Distinguished Senate President, the assurances of my highest consideration.”

  • AFRAID DON CATCH PRESIDENT BUHARI – By Mideno Bayagbon

    AFRAID DON CATCH PRESIDENT BUHARI – By Mideno Bayagbon

     

    The news, when it broke last week, was hardly surprising. Call the President any name you like. This was one time it pays to be a coward even when it comes packaged with monumental consequences for the economy and the country. A lot of tension was easily doused; the day of Armageddon postponed. It was to be the day of seemingly self inflicted trouble for the Buhari government. Yet all agree that this now postponed policy is inevitable, that the government cannot continue to shoulder the huge subsidy.

    Nigeria Labour Congress, NLC, which had long been flexing its muscles in preparation for the proposed nationwide strikes by workers on 27th January and 2 February was the first to react and drink the chill pill. It suspended the series of strike actions it had marshalled to counter the intention of the federal government to finally remove the contentious subsidy on petrol this year.

    Senate President, Ahmed Ibrahim Lawan, had earlier become a self appointed spokesman for the Buhari government in its attempt at dousing the impending fire. He donned a damage limiting toga and came to the public to say that President Muhammadu Buhari has never told anyone that he will remove the subsidy on fuel sometime in April this year. He of course was lying through his teeth. His puerile attempt did nothing to ameliorate the seething anger threatening to boil over in a few days.

    It is auspicious however, that the Buhari government, seeing what is happening around its neighbouring countries, where street protests have led to opportunistic coups in Mali, Sudan, Guinea and just recently, Burkina Faso, had to bite the bullet. There was urgent need not to allow some military adventurists and anti-democratic forces to capitalise on the discontent of the people, which was geared to boil over with removal of subsidy on petrol. In the neighbouring West African countries which have recently tumbled over into military rules, similar social, economic and security situations like ours, including jihadist terrorism, have been the catalysts.It therefore makes sense to shelve the proposed removal.

    The government which did not make any room for subsidy in its 2022 budget had to hurriedly came out when it had become inevitable that the economy would be grounded to a halt, with dire consequences on its trail. Even without any perceived coup threat, it could be calamitous if the series of strikes to be embarked upon by the NLC, were allowed to go on. Finance minister, Zainab Ahmed, who broke the news of the suspension of the removal of subsidy on petrol, informed that the Buhari, government has realised that the timing of its planned removal of petrol subsidy is “problematic” and will worsen the suffering of Nigerians.

    She also informed that the 2022 budget passed by the National Assembly will now be reworked to accommodate subsidy which is projected to be around N3 trillion. Don’t forget the 2022 national budget for the country is only N10 trillion. For a country already saddled with servicing its humongous debts profile with over 48.5 percent of its expected revenue intake, the Minister did not say where the fund for the subsidy will be prised from. But Special Adviser to the President, Femi Adesina had the answer: Nigeria has no option than to go borrowing again.

    Once again the Nigerian Labour Congress wins. Fuel importers and racketeers win. The economy loses. The Buhari government loses face as it faced its fear, damned all consequences and did the right thing by the country.

    The fuel subsidy albatross has been the Achilles heels of succeeding governments in Nigeria. Even the lion hearted President Olusegun Obasanjo had to also bite the chill bullet. Yet there is no economist worthy of the name who is in agreement that Nigeria should continue to fritter away its very lean resources on subsidising a critical item like petrol. But because we have failed to refine our fuel locally, despite the huge acreage of crude deposits; and because we have failed to properly turn around the four comatose refineries, or build new ones, fuel subsidy has become the nation’s invitation to economic and political implosion.

  • Real reasons Buhari deferred fuel subsidy removal

    Real reasons Buhari deferred fuel subsidy removal

    President Muhammadu Buhari’s decision to defer the removal of fuel subsidy has nothing to do with the 2023 elections.

    Rather, the President took the decision in the interest of the nation and the masses, according to the Buhari Media Organisation (BMO).

    In a statement signed by its Chairman Niyi Akinsiju and Secretary Cassidy Madueke, the group said that the move has more to do with the President’s pro-masses stance than any political consideration.

    “Our attention has been drawn to suggestions by some so-called experts and opposition elements that the Buhari administration’s decision to put fuel subsidy removal on hold has something to do with the next cycle of elections in 2023.

    “We view those comments as misleading, uninformed, unintelligent and an attempt to muddle the waters, especially as the President has always been clear about his opposition to removing fuel subsidy without putting the necessary structures in place.

    “It is strange that not many people could recall how President Buhari expressed his reluctance to remove subsidy in an interview with Arise TV last year.

    “So we’re surprised that some people would read political motives into a decision that is clearly in line with the mindset of a President who has in six years given bailouts funds running into trillions of Naira to States to pay salaries and pensions,” it said.

    BMO expressed concern that the 18 month timeline for subsidy is being misinterpreted to mean that Buhari was shifting the decision to the next administration.

    “What many of the President’s critics have failed to factor into their reasoning is the fact that the ongoing rehabilitation of the nation’s four refineries had a timeline of 18 months for them to be operational.

    “While that of Port Harcourt has a three-phase rehabilitation plan, the first phase of which will take it to a production capacity of 90 per cent by January 2023, those in Warri and Kaduna are expected to be fully operational by the same time.

    “These are the same refineries that previous Peoples Democratic Party (PDP) administrations did little or nothing to revive, yet spent trillions of naira on a fraudulent subsidy scheme.

    “Can anyone forget how PDP elements and members of their families turned refineries’ maintenance into a criminal bazaar while making claims for payment for fake imported petroleum products?

    “More surprising is that same party is shamelessly alleging that the current administration is spending too much on subsidy when it is common knowledge that only the Nigerian National Petroleum Corporation NNPC is importing fuel today”.

    BMO urged Nigerians to ignore any attempt to give political colouration to a well-thought-out decision taken in the national interest.

  • Fuel subsidy: Protests unnecessary again – NLC

    Fuel subsidy: Protests unnecessary again – NLC

    The Chairman, Nasarawa State Chapter of Nigeria Labour Congress (NLC), Mr Yusuf Iya, has directed the union members to suspend a proposed strike against the plan to remove fuel subsidy.

    He said in Lafia on Wednesday that the suspension followed a directive by its national headquarters to that effect.

    The NLC had planned a protest for Thursday but viewed it unnecessary since the federal government had addressed the issue.

    The News Agency of Nigeria (NAN) reports that the organised labour had earlier directed all state chapters to mobilise members for a mass protest should the federal government go ahead to remove fuel subsidy.

    Iya explained that already the union in the state had mobilised members, civil societies, traders and organisations, among others, in readiness for mass protest.

    The NLC chairman commended the civil societies and other allies for their support so far.

    He assured workers that the leadership of the union would continue to stand for them by prioritising their welfare.

    Iya explained that the union had only suspended the planned action, it could revisit it if necessary.

    He said that the leadership of the congress would continue to engage the government in dialogue to ensure local refining of petroleum, creation of sustainable jobs and provision of petrol at affordable price.

  • President Buhari tactical shifts fuel subsidy removal to next government

    President Buhari tactical shifts fuel subsidy removal to next government

    President Muhammedu Buhari has endorsed the 18-month suspension of the removal of subsidy on Premium Motor Spirit (PMS), tactical shifting the removal to the next government as his tenure terminates in May 2023.

    The Minister of State, Petroleum Resources, Mr Timipre Sylva, made the position of the President known at a special media briefing organised by the office of the Special Adviser to the President on Media and Publicity, Mr Femi Adesina, in Abuja on Tuesday.

    Sylva had earlier met behind closed door with the president, who also serves as the Minister of Petroleum Resources.

    According to Sylva, arrangements have reached advanced stage by the executive arm of government to propose to the National Assembly, an 18-month extension for the implementation of the Petroleum Industry Act (PIA) that was meant to kick-start in February.

    He said: “we don’t intend to remove subsidy now. That is why we are making this announcement.

    “We also see the legal implication. There is six months provision in the PIA, which will expire in February and that is why we are coming out to say that before the expiration of this time, as I said earlier, we will engage the legislature.

    “We believe that this will go to the legislature; we are applying for amendment of the law so that we will still be within the law.

    “We are proposing, an 18months extension. But what the National Assembly is going to approve is up to them.

    “We would approve an 18 months extension and then it is up to the National Assembly to look at it and pass the amendment as the see it.’’

    On the possibility of gradual increase in the price of PMS, the minister dismissed such plans, saying “that is not on the table as well. Gradual or increment in whatever guise is not on the table.

    “We are going to see how to rejig the law; this is not going to be the only amendment to the PIA.

    “A few months ago, the president already proposed an amendment to the law.”

    The president had on Aug. 16, 2021 signed the Petroleum Industry Bill into law.

    The PIA is expectedly meant to grow investors’ confidence in Nigeria’s Petroleum Industry and create more employment opportunities for the populace in the host communities.

    Buhari’s assent to the bill was in furtherance to the passage of the bill by both the Senate and the House of Representatives earlier in July 2021.

  • Why FG postponed fuel subsidy removal indefinitely and what it means

    Why FG postponed fuel subsidy removal indefinitely and what it means

    The Minister of State for Petroleum Resources, Chief Timipre Sylva, says it is clear that it is not possible to remove subsidy on petroleum products due to some impediments.

    He said this during a meeting with Senate President Ahmad Lawan on Monday in Abuja over the planned removal of subsidy on petroleum products by the Federal Government.

    The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, was at the meeting.

    According to Timipre, it is clear that it is not possible at this time for the government to remove the subsidy.

    “It is not within the contemplation now, of this administration, to remove subsidy, but of course, if there are legislative enablers that will ensure it is within the law, then I think it is a legislative responsibility.

    “Subsidy removal will not happen. When you pass a law, a law is not cast in stone. In implementing the law, you now arrive at some impediments to implementation.

    “We now feel we need to take care of those impediments because before subsidy is removed, there are certain things that need to be put in place to protect the people.

    “We feel we need sometime to be able to put everything in place so that when subsidy is removed, it will have minimal impact on the people,” the minister said.

    In his remarks, Lawan faulted the timing of the planned subsidy removal.

    He said that in as much as the administration and management of subsidy on petroleum products were flawed, the President Muhammadu Buhari-led government believed that sufficient planning must be carried out before its eventual removal.

    He said: “The position of everyone in government today is that, admittedly, subsidy administration and management are flawed because of so many reasons.

    “Admittedly, the burden is huge and massive and there is need at one point to do away with the subsidy.

    “Even though our economy is growing, we still have the challenge of getting things to be better for our people.

    “A lot of us in this administration believe that the issue of removal of subsidy should be handled with utmost care, especially that sufficient planning needs to be done.”

    Lawan appealed the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) to stop their planned protest against the proposed removal of fuel subsidy.

    The senate president said the move was unnecessary.

    “I am taking this opportunity to appeal to the TUC and NLC to shelve this plan to go on strike or demonstration, it is totally unnecessary.

    “There is not going to be removal of subsidy; so, there is no need for this. Please, let’s not create unnecessary tension where there should be none,” he said.

    The Minister of Finance, Ahmed, said that the Federal Government made provisions for fuel subsidy in the 2022 Budget – from January to June.

    According to her, all payments on fuel subsidy ordinarily would cease as from July 2022.

    She said that in view of the timing which was “problematic”, the government decided not to go ahead with the removal of subsidy in July, particularly against the backdrop of outcomes from ongoing consultations.

    She added that the Federal Government was exploring alternatives to premium motor spirit as well as pushing to step up the country’s crude oil refining capacity.

    The labour unions had planned to hold a protest from Jan. 27 over the planned subsidy removal.

    What indefinite postponement of petrol subsidy removal means – Economist

    An economist, Dr Muda Yusuf, says the decision of the Federal Government to postpone the removal of petrol subsidy indefinitely has a weighty economic cost.

    Yusuf, who is the Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), made this known in a statement issued on Monday in Lagos.

    Hajia Zainab Ahmed, Minister of Finance, Budget and Economic Planning, had made the announcement on Monday in Abuja, speaking at the National Assembly, that the government would no longer go ahead with its earlier plans to remove subsidy on Premium Motor Spirit in July 2022.

    Reacting to the development, Yusuf noted that the capitulation on the subsidy removal did not come as a surprise because of the prevailing realities and opposition by organised labour.

    He said: “There were too many odds against the move. There were obvious concerns about the potential political cost to government and the ruling party.

    “There were worries about the social cost given the excruciating poverty in the country. There was also the waning goodwill required by government to enlist the support of the people.

    “The whole subsidy story became a political economy matter. It was moved from the realm of economics and investment to the political realm.

    “The outcome was predictable, especially with an impending general elections next year.

    “But the economic cost of the capitulation is equally weighty. The truth is that you cannot eat your cake and have it.”

    According to him, Nigerians should expect the cost of funding the subsidy to be much higher this year because of the surge in crude oil price.

    Yusuf said if the oil price remains high for most part of the year, the subsidy cost could go as high as N2.5 trillion or even more by the end of the year.

    He said: “This would surely affect funding for critical infrastructures such as roads, railways, healthcare education, and even security.

    ” The petroleum products smugglers, beneficiaries of the fiscal leakages in the fuel subsidy ecosystem and their collaborators will continue to smile to the banks for the next one and half years.”

    According to him, it will be tough for some states in terms of payment of salaries, especially states that are heavily dependent on federal allocation.

    “Many will struggle to meet their financial obligations as sub-nationals,” he said.

    Yusuf , a former Director General of the Lagos Chamber of Commerce and Industry, said macroeconomic risks would become elevated as fiscal deficit and borrowing significantly surpasses projections in the 2022 budget.

    He added that the Central Bank of Nigeria may have to continue to cover financing gaps through ways and means.

    ” This of course has serious inflationary implications. The macroeconomic outcomes would adversely impact on the exchange rate, leading to further depreciation of the currency.

    “Meanwhile, prospective investors in the downstream oil sector would withhold their investments until the policy environment becomes conducive.

    “Additionally, a major confidence crisis has been created around the Petroleum Industry Act as a result of this capitulation.

    “These are the price we would have to pay as a country for the policy reversal,” Yusuf said.

  • Buhari never told anyone that subsidy be removed – Senate President

    Buhari never told anyone that subsidy be removed – Senate President

    Senate President Ahmed Lawan has assured Nigerians that subsidy on Petroleum Motor Spirit (PMS) will not be removed for now as being reported by some social and conventional media.

    Lawan stated this when he fielded questions from State House correspondents after a closed door meeting with President Muhammadu Buhari on Tuesday in Abuja.

    According to him, Buhari has not authorised anybody to remove fuel subsidy as speculated in some quarters.

    He said: “Well, it will be of interest to Nigerians to hear what I’ve come to discuss with Mr President among several other things. Many of us are very concerned with the recent agitations and protests.

    “And many citizens were so concerned; our constituents across the country are very concerned that the federal government will remove the petroleum subsidy.

    “And for us, as parliamentarians, as legislators representing the people of Nigeria, this must be of interest to us.

    “And we’ve just finished our recess; we had gone home to our constituencies and senatorial districts.

    “We felt the pulse of our people. And I found it necessary to visit Mr President, as the leader of our government and our leader in the country, to discuss this particular issue of concern to Nigerians, and I’m happy to inform Nigerians that Mr President never told anyone that the petroleum subsidy should be removed.’’

    According to him, even though the subsidy on PMS is heavy, the burden cannot be transferred to ordinary citizens.

    “I know and I agree that the subsidy is very heavy. But I think we must never transfer the burden to the citizens.

    “I believe that we need to look at the quoted figure of may be 100 million litres that people claim we’re consuming. Is it real?” he queried.

    Lawan insisted that he wasn’t convinced that Nigerians consume that much a day, adding that there may be some level of sabotage involved.

    “I mean is it either under recoveries of subsidy? Is it really 100 million litres per day? How on earth are we consuming that? We need to look at this critically and see how we can find the truth.

    “Because I am not convinced that within the boundaries of Nigeria we are consuming 100 million litres a day. Probably neighbouring countries may be benefiting from this. Can’t we do something about it?

    “It is a failure if we are not able to control it, this particular aspect of smuggling is the petrol and then in return, push the burden to the ordinary citizen,” he added.

    Lawan lauded the president for always showing concern over the plight of Nigerians.

    “So, I want to commend Mr President, for still keeping this philosophy of ensuring that the most ordinary Nigerian does not suffer in any way.

    “Government is meant to serve people. And the essence of government law we all know is to protect the lives and property and welfare of the people. And that federal aspect is part of the welfare.

    “It may not be exactly the way we want it in the implementation of subsidy. But that is our challenge as an administration and as a government,’’ he added.

    On recent remarks by some state governors, calling for immediate removal of the fuel subsidy, Lawan said:

    “Well, that’s their opinion. And they had their time. They should have done something about it.

    “Now we have to do something about it. I have admitted that the burden is heavy. But I don’t think that the ordinary citizen should be the one to bear the burden.

    “Those of us in government should come together and find a solution to this, including the PDP states. And PDP as a political party, there must be an irreducible minimum level of partisanship.”

    On the new electoral bill vetoed by the president, Lawan expressed optimism that an amended electoral bill maybe returned to the president next week for his assent.

  • Subsidy removal will worsen Nigerians’ suffering —PFN to FG

    Subsidy removal will worsen Nigerians’ suffering —PFN to FG

    The Pentecostal Fellowship of Nigeria has told the Federal Government that removing fuel subsidy will aggravate the suffering of Nigerians who are already underprivileged.

    The President of PFN, Bishop Wale Oke, urged the government to defer the proposed policy in order not to worsen the hardship and trigger crisis in the country.

    Oke said this in a statement issued on Sunday on the proposed subsidy removal.

    He noted that the implementation of the policy would lead to hike in the price of fuel and this would have a ripple effect on prices of goods and services

    Oke warned that the implementation of such policy would increase the hardship currently being experienced by the people of the country.

    The priest said prices of foodstuffs and other daily needs were increasingly going out of reach of the people, noting that if the proposed subsidy removal was effected, it would exacerbate the hardship of the people of the nation.

    Bishop Oke further said the situation in the country was very bad because of the steady decline in the purchasing power of Nigerians as a result of the continuous fall in the value of the nation’s currency.

    The statement read, “Everybody will feel it, particularly the less privileged. The negative effects will surely outweigh the positive.

    “The cost of transportation for human and goods across the country will skyrocket and other things connected which will have a spiral effect on general living standard of the populace; the suffering will be multi-dimensional. Please let all stakeholders be sensitive to this avoidable path and do the needful.

    “By whatever means, let the Federal Government put its heart into ensuring that our refineries are back to life. In addition, in order to stem the rising cost of living, farmers and others connected to them should be encouraged. This is what can help our economy.”

    He said the PFN would always support policies that would enhance good governance, but charged the government to this effect to put in place tangible palliative measures that could ameliorate the hardship being experienced.

    He said, “Without begging the issue, there should be well defined palliative measures in place that can cushion the effect of the hardship being experienced by Nigerians, especially the commoners. One is not talking about political palliatives that never last. We have seen enough of such.

    “An increase in the price of petroleum from its present N165 to N340 per litre can trigger tension and crises in the country which in turn can paralyse our economy if not handled with utmost care.

    “Again, the planned introduction of N5,000 for 40 million poor Nigerians is to create a cesspool of corruption. How do you define the poor? They, mostly, don’t use telephones. They, mostly, don’t have bank accounts. How will the money get to them?”

    Oke urged the government to be wary of policies that could jeopardize the conduct of the 2023 general elections, insisting that all hands must be geared towards steering the wheel of the country to safety.

    As a solution to the rising cost of food items, the PFN President advised that farmers and relevant stakeholders should be empowered with relevant tools and funds through loans with little interest.

    Oke, who is also the presiding Bishop of The Sword of the Spirit Ministries, implored the government not to relent in its efforts at ensuring that security challenges in the country become a thing of the past.

     

  • Petrol marketers back FG on subsidy removal; NANS threatens to shutdown Nigeria

    Petrol marketers back FG on subsidy removal; NANS threatens to shutdown Nigeria

    The Independent Petroleum Marketers Association of Nigeria (IPMAN), said yesterday, that its support for the Federal Government over the planned removal of subsidy on Premium Motor Spirit (PMS), stems from the realization that the Petroleum Industry Act (PIA) signed into law by President Muhammadu Buhari on August 16 makes no provision for subsidy.

    Besides, IPMAN President, Chinedu Okoronkwo, told the News Agency of Nigeria (NAN) yesterday that his association has consistently “advised the government to remove petrol subsidy because it is not in the interest of development of the downstream sector.”

    But the National Association of Nigerian Students (NANS) threatened, yesterday, to shut down the country should the Federal Government go ahead with the planned fuel subsidy removal.

    The students’ body also rejected the government’s plan to pay N5,000 transport allowance to 40 million Nigerians to cushion the effect of soaring fuel prices.

    Okoronkwo, in the NAN interview, said: “We welcome the decision of the government to stop subsidising petrol by 2022 and we are hoping it will attract more investments to the sector, especially with the passage of PIA.”

    He added: “What we want is that a level playing field be provided for everyone in the sector to encourage competition once the subsidy is removed.”

    Also speaking on the issue, the immediate-past President, Major Oil Marketers Association of Nigeria (MOMAN), Tunji Oyebanji, said continued subsidising of petrol was not sustainable in light of current economic realities.

    He said the 2022 deadline was realistic and its impact might be mitigated with the coming on stream of the 650,000BPD Dangote Refinery, Bua Group Refinery, Waltersmith Refinery and other modular refineries.

    Oyebanji, who is the Managing Director of 11 Plc, however, faulted the plan to replace the subsidy with cash transfer to Nigerians due to lack of a reliable data base in the country.

    “In my personal opinion, I am of the view that such funds should be channeled to areas like education and mass transportation that would be accessible to ordinary Nigerians,” Mr Oyebanji said.