NEC suspends removal of subsidy on petroleum products

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 development 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.

ValidViewNetwork reports that there have been series of agitations on the proposed removal of the subsidy.

The minister 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.

Under the Petroleum Industry bill signed by President Muhammadu Buhari in August 2021, part of the Act does not create room for subsidy.

In January 2022, the Federal Government proposed 18 months extension to the National Assembly for the implementation of the Petroleum Industry Act (PIA).

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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.

However, the fuel subsidy should have been fully removed by June, but the current administration said it is not yet time to implement the full removal.

The decision of of the government may be to allow the incoming government which will be ushered in on May 29 to take the decision in line with its focus and goals, ValidViewNetwork reports.