NEWS
FG makes u-turn on subsidy removal says it is not on its card at the moment – Lawan
Lawan urges labour to shelve planned protests as it’s no longer necessary
John Akubo
The Federal Government has soft-pedal on its initial plan to remove subsidy on petroleum products saying it is clear to even the blind and audible to the deaf that the situation of the country does not allow for that at the moment
Recall that while presenting the 2022 budget the Federal Government had infused in the budget provision for subsidy untill June 2022 when it wanted to remove the subsidy which was passed and assented to.
In seeking for a soft landing based on the outcry from Nigerians the minister of Petroleum Resources Timipre Sylva and his counterpart in the ministry of Finance Hajia Zainab Ahmad as well as the Group managing Director NNPC limited Mele Kyari met with the national assembly leadership to ammend the law to provide for an extension of subsidy provision beyond June 2022
The Minister of Finance, Budget and Economic Planning, Hajia Zainab Ahmed, said that the Federal Government had postponed the planned removal of subsidy on petroleum products till further notice.
The meeting was convened at the instance of the President of the Senate, Ahmad Lawan.
The Finance Minister said the Federal Government initially had the plans to remove subsidy on petroleum products from July this year.
She said that was the reason adequate provision was made in the 2022 national 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 which indicated that all petroleum products would be deregulated.
“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 amount 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 subsidy from July 22 to whatever period that we agreed was suitable for the commencement of the total removal’
The minister for state petroleum Resources Timipre Sulva said
“As far as I am concerned at this point it is a legislative duty.
“The law has been passed we are all aware but there is no law that is cast in stone. “It is clear to everyone that at this point in operationalizing the law is not possible within 6minths framework that has been provided for in the law and if that time frame provided for in the law is not feasible which has come to us as a result of operationalising the law then it is also a legislative responsibility now to see what can be done in extending that time frame for it to be in the purview of the law,
“Secondly the other legislative issue arising from it is the provision for the subsidy that is not there after June.
It is very clear to the blind and audible to the deaf that it is not feasible at this time to remove subsidy.
“I know that some nay sayers, or political pundits want to bring politics into it but it is not within the contemplation of this administration now to remove subsidy.”
The president of the Senate Ahmad Lawan said the meeting ordinarily shouldn’t have been opened for media coverage however he indicated that anything that will interest the public is worth coverage
The Senate President therefore urged the organised labour unions in the country to shelve their proposed nationwide protests as it was no longer necessary.
“There is need at one point to do away with subsidy but the President genuinely feel for Nigerians particularly the most vulnerable. Even though our economy is growing but we still have challenge getting better.
“Because of this feeling by the President and most 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.
“Significant arrangement for absorbing the shock that will come with the removal should be done and the timing is such that the impacts and consequences will not add to hardships.
He said the sympathy for Nigerians is not about NLC.
“We are talking about every Nigerian. NLC is just an organised part of the system. Our concern is beyond NLC.
“I am taking this opportunity to speak to TUC and NLC to shelve this their plan to go on strike or demonstration. “It is totally unnecessary. There is not going to be removal of subsidy so let us not create unnecessary tension where there should be none.
“Please forget about the 27th of January deadline. We are supposed to come together and work assiduously to see that our country is stable that our people enjoy the benefits of Government programs and projects. “At the end of the day whatever decision we would be taking would be in the best interest of our people.”
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised concerns over alleged monopolistic practices by Dangote Refinery, following a public dispute about fuel pricing in the downstream petroleum sector.
Recall that the refinery, Africa’s largest, recently disclosed its petrol pricing at N990 per litre in trucks and N960 per litre into ships, a move it justifies as being in line with international rates.
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PETROAN, however, sees this as an attempt to suppress competitors and dominate the Nigerian market.
The rift began when Dangote Refinery claimed that complaints from marketers regarding its pricing were fueled by intentions to import cheaper, potentially substandard products.
In response, PETROAN strongly rejected these allegations, suggesting that Dangote’s claims are tactics designed to maintain a monopoly in the sector.
Joseph Obele, PETROAN’s spokesperson, stated that the association remains committed to importing high-quality products at more competitive rates to ensure affordability for Nigerian consumers.
According to PETROAN, competition in the market is essential for achieving fair pricing, and any attempt to stifle it would be detrimental to consumers.
They argue that Dangote Refinery’s pricing should reflect production costs and fair margins rather than international benchmarks, especially given concessions granted by the government for the refinery’s establishment.
PETROAN also announced its plans to partner with foreign refineries and financial backers to import premium-quality petroleum products at prices below current rates.
The association aims to enter the market by December 2024, pending necessary regulatory approvals.
“The allegations that PETROAN will import substandard products are unfounded and aimed at creating an unfair playing field,” the statement read.
PETROAN warned that similar claims in the past had led to significant price hikes when competitors were pushed out, emphasizing that the entry of new players into the market would lead to more competitive pricing and ultimately benefit Nigerian consumers.
PETROAN expressed appreciation for President Bola Tinubu’s commitment to revitalizing Nigeria’s state-owned refineries and urged the government to consider privatizing the Port Harcourt and Warri refineries once rehabilitation is complete.
The association believes a transparent privatization process will help strengthen Nigeria’s downstream sector and counter monopolistic tendencies.
To address the ongoing pricing challenges in the sector, PETROAN called on the government to convene a comprehensive meeting of industry stakeholders, including major associations like IPMAN, DAPPMAN, MEMAN, NUPENG, and PENGASSAN.
PETROAN believes that collaboration among these groups will be instrumental in establishing a sustainable and competitive pricing framework for petroleum products in Nigeria.
Sultan of Sokoto, Sa’ad Mohammad Abubakar II, has called on Nigerians to avoid publicly criticizing their leaders, instead urging citizens to place their trust in God to address leadership concerns as He deems fit.
Speaking at the Regional Conference on Climate Change-Induced Conflicts in Northern Nigeria, organized by the Kaduna State Bureau of Interfaith in collaboration with International Alert, the Sultan emphasized faith and patience in navigating the country’s challenges.
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Acknowledging Nigeria’s current economic and social hardships, the Sultan encouraged continuous prayer, not only for the nation but for its leaders as well.
“Even though many feel times are particularly hard, we believe relief will come. Let’s increase our prayers for our leaders, trusting God to address them in His way,” he said, expressing hope that divine intervention could bring stability and prosperity.
The Sultan reminded political leaders of their ultimate accountability to God, cautioning that they will stand alone on the Day of Resurrection, with only their deeds to support them.
“On that day, every leader will stand alone. Governors, advisers—none will have support except their own deeds. Let us act with a deep sense of responsibility and fear of God,” he stated.
Addressing religious leaders, he warned against misleading their followers for personal gain, underscoring the trust many place in their religious guidance.
“Only God can save any human being,” he said, encouraging Nigerians to remain faithful and discerning in their spiritual beliefs. “Focus on worshiping Allah and leave the rest to Him. Don’t follow those who might lead you astray.”
With leaders from various religious communities, including the President of the Christian Association of Nigeria (CAN), in attendance, the Sultan called for unity, resilience, and communal effort to tackle pressing issues such as climate change, poverty, and insecurity in the northern region.
He praised the North’s history of unity and resilience, warning against divisive narratives that threaten communal harmony. “When we are united, we can face any challenge and build a prosperous community,” he asserted.
The Sultan’s remarks come amid ongoing social and environmental issues in the region, including a recent surge in climate-related challenges that have exacerbated poverty and security threats.
In light of these issues, he called on both Muslims and Christians to intensify their prayers, saying, “Our country faces many challenges, and we must turn to God in prayer. Let us intensify prayers in our mosques and churches.”
In a decisive move, President Bola Tinubu has ordered the immediate release of all minors detained by police during the recent #EndBadGovernance protests.
The directive, announced by Minister of Information and National Orientation, Mohammed Idris on Monday, underscores the government’s commitment to protecting children’s rights and ensuring justice.
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Idris confirmed that President Tinubu’s directive prioritizes the welfare of detained minors, instructing the Ministry of Humanitarian Affairs to facilitate their safe reunification with their families.
A committee led by the Ministry of Humanitarian Affairs will be established to oversee the welfare of the released minors and ensure compliance with the president’s orders.
Additionally, President Tinubu has directed a formal investigation into the actions of law enforcement agencies involved in the arrests.
The president emphasized that any misconduct uncovered during the investigation will result in disciplinary action, affirming his administration’s dedication to accountability within law enforcement.
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