The National Economic Council (NEC) has asked Nigerians to expect a decision on petrol subsidy in June, when the provision for its payment in the 2022 budget expires.
Governor of Nasarawa State, Abdullahi Sule gave the update on behalf of the NEC, after a meeting presided over by Vice President Yemi Osinbajo at the Presidential Villa, Abuja.
Sule who was joined at the post-NEC press briefing by Edo state Governor Godwin Obaseki noted that the Nigerian National Petroleum Corporation (NNPC) must be run differently since it is now a limited liability company.
Revealing that the federal government spends about N2 trillion on petroleum subsidy, an amount which can be used for other things, Sule added that the NEC wondered whether that should be allowed to continue in a situation where only two-thirds of the states of the federation consume the subsidy.
The Nigerian Xpress reported that Senate President Ahmed Lawan has debunked reports that President Muhammadu Buhari has ordered the removal of fuel subsidies.
Sen. Lawan’s stance, however, is at variance with that of Minister of Finance, Budget and National Planning, Zainab Ahmed.
At a recent media briefing, the minister had given June 23 as the terminal date for the removal of fuel subsidy, citing the Petroleum Industry Act (PIA), which stipulates stages of regulating the oil sector to enhance its efficiency.
Ahmed had said, “From July to December, there is no provision made for subsidy. Our assumption is that by June, we would have been able to work through a process with all stakeholders, NOC, oil regulators, different MDAs that have a role to play as well as businesses.
The PIA has made a provision that prices of products in the petroleum sector must be deregulated.
“And so far, we have been able to deregulate kerosene prices, diesel prices, the only one that is still not deregulated is PMS. We are trying to comply with the law because the PIA is an Act of the NASS and government has a responsibility to comply.”
