Again, Buhari shies away from removing petrol subsidy, extends decision

 

For Nigeria, there appears to be no end in sight yet for the politics of subsidy removal on premium motor spirit (PMS), otherwise more popularly known as petrol.

This is because the President Muhammadu Buhari-led Federal Government has once again kicked the can down the road, with a proposal to extend the period for the removal of subsidy on petrol by 18 months.

Minister of State for Petroleum Resources, Mr Timipre Sylva, announced this on Tuesday while briefing State House correspondents in Abuja.

Sylva also said that the Federal Government was at the point of approaching the National Assembly to amend the Petroleum Industry Act (PIA).

“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 said.

Asked if the extension had any link to the 2023 general elections, the minister demurred.

He snapped: “Of course not.

READ: Petrol subsidy gone forever, NNPC

“This is just the human face of the government and the President. He wants everything to be in place and he insisted that if we want to remove fuel subsidies, we must make sure we put every measure in place to protect Nigerians.

“That is the President’s insistence. We are now taking steps to ensure that these processes are in place. And this entails talking with labour. We are already talking with labour and our discussions are around palliatives and mitigations.”

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.

The minister believes other measures such as the Dangote refinery, the Port Harcourt refinery, and other modular refineries would have significantly come on stream by the end of the year.

According to him, the new PIA provides for unrestricted market pricing for PMS from the effective date it was signed into law by the President.

He, however, stated that the PIA also envisaged the potential for supply disruption with its resultant effect on the economy.

“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,” he added.

President Muhammadu Buhari, he stated, has assured Nigerians that his administration would continue to put in place all necessary measures to protect the livelihoods of the citizens, especially the most vulnerable.