APC commends FG
The Minister of Finance, Budget and Economic Planning, Zainab Ahmed, yesterday announced that the Federal Government has postponed the planned removal of subsidy on petroleum products till further notice.
Ahmed stated this at a meeting held at the National Assembly Complex, in Abuja, the Federal capital.
The meeting, which was convened at the instance of the President of the Senate, Ahmad Lawan, had in attendance the Minister of State for Petroleum Resources, Timipre Sylva and the Group Managing Director of the. NNPC Ltd, Mele Kyari, among others.
According to the Finance Minister, the Federal Government initially had plans to remove subsidy on petroleum products from July this year.
She explained that it was the reason that adequate provision was made in the 2022 Budget for subsidy payment till June.
She said, Provision was made in the 2022 Budget for subsidy payment from January till June. That suggested that from July, there would be no subsidy.
The provision was made sequel to the passage of the Petroleum Industry Act, (PIA), which indicated that all petroleum products would be deregulated. As a sequel to the passage of the PIA, we went back to amend the fiscal framework to incorporate the subsidy removal.
However, after the Budget was passed, we had consultations with a number of stakeholders and it became clear that the timing was problematic. We discovered that practically, there is still heightened inflation and that the removal of subsidy would further worsen the situation and impose more difficulties on the citizenry.
Mr. President (Muhammadu Buhari) does not want to do that. What we are now doing is to continue with the ongoing discussions and consultations in terms of putting in place a number of measures.
One of these include the roll-out of the refining capacities of the existing refineries and the new ones which would reduce the number of products that would be imported into the country.
We, therefore, need to return to the National Assembly to now amend the budget and make additional provision for the subsidy from July 22 to whatever period that we agreed was suitable for the commencement of the total removal”.
The Senate President, therefore, urged the organised labour unions in the country to shelve their proposed nationwide protests as it was no longer necessary.
In a swift reaction, the All Progressives Congress (APC), commended the Federal Government for suspending the move.
The National Secretary of Caretaker/Extraordinary Convention Planning Committee (CECPC), Sen. John Akpanudoedehe, in a statement issued yesterday, said its removal at this time would have heightened inflation and caused undue hardship on the citizenry.
The governing party said its removal in due course would usher in the eventual and full deregulation of the countrys petroleum sector.
The Secretary stressed that in line with the new Petroleum Industry Act (PIA), the Federal Government was already putting in place measures, particularly boosting the local refining capacities to reduce the countrys reliance on expensive import of refined petroleum products.
